The Ministry of Finance welcomes the adoption of legislation necessary for the legal start of the debt restructuring process

9/17/15

Today 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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