On April 27, following the initiative of the Ministry of Finance, the Government adopted a Resolution on the restructuring of Ukravtodor’s debt to VTB Capital amounting to $100.8 million.
The Ministry of Finance is actively working to recover the public finance system and to reduce the debt burden on the state budget. With this purpose, last year the Ministry of Finance successfully restructured 13 out of 14 series of sovereign as well as sovereign guaranteed bonds.
The restructuring of Ukravtodor’s debt is the final step in the restructuring of the sovereign guaranteed debt. Thanks to the agreed deal, Ukraine will be able to reduce its debt burden, which shall contribute to the macroeconomic stability, economic recovery and, hence, more investments to the country.
Key facts on the restructuring deal:
· Total debt - $100.8 million;
· 25% of the nominal debt value are written off ($25.2 million);
· The maturity term is prolonged to September 1, 2019;
· The new sovereign bonds amounting to $75.535 million and state derivatives are issued as a result of restructuring.