The Verkhovna Rada has adopted the legislation necessary to
launch the legal procedure of foreign debt restructuring. 226 votes were
necessary, but finally more than 300 votes were given for the
legislation package. The Ministry of Finance welcomes the successful vote
at the Verkhovna Rada and is grateful to the people’s deputies
for their commitment to the legislation which is crucial for the stability and
economic recovery of our country.
The agreed deal between the Ministry of Finance and the Special Creditors’ Board
on the restructuring on the foreign commercial debt of Ukraine is a major
success for our country and the core element of the plan of the Ministry of
Finance aimed to stabilize the Ukrainian economy and to lay ground for it to
return to growth. The main points of the agreement are:
- the principal value of the sovereign debt guaranteed by the
Ukrainian state shall be reduced by 20% (USD 3,6 bn) with
immediate effect;
- the repayment of USD 11,5 bn shall be postponed and
effected after 2019. Thus, Ukraine receives a free-of-charge
period of four years to recover its economy and return to the sustainable
growth of its GDP.
The reduction of the debt burden on Ukraine will help strengthen the
macroeconomic stability, recover the economy and to attract more
investments to the country.
The debt restructuring agreement contributes to three restructuring goals
as set in the cooperation programme of Ukraine and the IMF “Extended
Financing Facility”. This was one of conditions necessary to continue
successful cooperation between Ukraine, the IMW and other bi- and
multilateral partners of Ukraine.
Today’s adoption of the necessary legislation package on debt restructuring
is an important proof of the pro-Ukrainian attitude of the people’s deputies
and again demonstrates the power and unity of all branches of power in Ukraine
in their effort to reform our country.
Based on the results of the vote, the Ministry of Finance is planning
to launch the legal procedure on the Eurobonds’ exchange within several
days.
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