Ukrainian president extends moratorium for payments on 'Russian' Eurobonds
KYIV. May 4 (Interfax) - Ukrainian President Petro Poroshenko has signed a bill to amend Chapter 4 of the Ukrainian law "On particularities of making transactions with regard to debt of the government, debt guaranteed by the government or municipal debt", which extends the temporary moratorium for payments on the two-year Eurobonds issued in December 2013 and purchased by Russia's National Wealth Fund.
"April 29, 2016. [The bill was] returned with the president's signature," the note on the page dedicated to the bill on the Verkhovna Rada website said.
The Verkhovna Rada passed the bill on April 12. The bill was sent out for signature to Ukrainian President Petro Poroshenko on April 15.
This bill stipulates for an extension of the validity period of the temporary moratorium on payments due under the two-year Eurobonds issue dated December 2013 that was bought out by Russia's National Wealth Fund for the total amount of US$3 billion. The moratorium ends on July 1, 2016.
On April 12, Ukraine's Deputy Finance Minister Oksana Markarova said, when introducing the bill, that a law passed in May 2015 had imposed a moratorium on foreign debt payments until July 1, 2016. Since most of Ukraine's foreign debt has been restructured in the course of negotiations with creditors, it is now necessary to extend the moratorium, which will now apply only to payments on the so-called "Russian" Eurobonds, she said.
Markarova then said that the Ukrainian state will become bound to fulfill its obligations and make payments due on these Eurobonds, starting from July 1, 2016 if the Ukrainian parliament does not pass the bill.
The passed bill eliminates the expiration date for the moratorium, making it indefinite.