The Cabinet of Ministers of Ukraine decided to implement in 2017 a deal with the public debt.
What is it about?
The Cabinet of Ministers of Ukraine adopted a decision on implementation of transaction with the public debt through exchange of government bonds in the ownership of the National Bank, for new government bonds.
The basis for adoption of this decision is implementation of paragraph 10 of the Final Provisions of the Law of Ukraine "On the State Budget of Ukraine for 2017" and consent of the National Bank to carry out such a transaction.
By the same decision, the Cabinet of Ministers authorized Minister of Finance Alexander Danilyuk to carry out such a deal and ordered the Ministry of Finance to issue a government bond issue totaling up to 229 billion hryvnia, a maturity of 8 to 30 years, and a yield that depends on the level of inflation.
What’s the benefit?
The implementation of this decision is part of the integrated approach of the Ministry of Finance to management of public debt. It will reduce the peak load on the state budget for repaying and servicing the public debt and evenly distribute repayment of government bonds in the National Bank's portfolio in equal installments for up to 30 years.
Information: as of May 24, 2017, the National Bank owns government bonds for a total of 377.9 billion. hryvnia.