Ukraine in April-May to issue Eurobonds for $1 bln under U.S. guarantees - MinFin
KYIV. March 23 (Interfax) - Ukraine intends to issue another installment of Eurobonds for $1 billion, provided by guarantees of the United States, in April-May 2015, the website of the country's finance ministry said.
As was reported last week, Ukrainian sovereign Eurobonds responded to a fall in cost on the intention of the Ukrainian Finance Ministry to discuss all possible options for their restructuring with bond holders, in particular, a principal reduction.
It was also reported that the board of directors of the International Monetary Fund (IMF) on March 11 approved the provision of Ukraine with 12.348 billion SDR or around $17.5 billion as part of the EFF program. The new program stipulates wide bilateral and multilateral support from other creditors, in particular the holders of sovereign borrowings, with which the Ukrainian government intends to hold consultations for the improvement of medium term debt sustainability.
The Finance Ministry began consultations with creditors on March 13 and is expecting to reach a decision in two months.
According to the Finance Ministry, the debt of Ukraine at the end of 2014 on Eurobonds was $17.28 billion, of which Eurobonds for $1 billion under U.S. guarantees were not included in the restructuring plan.
Of total direct and state guaranteed debt in the amount of $69.81 billion as at the end of 2014, 14.9% must be repaid in 2015, another 47.6% in 2016-2019 and the average timeframe for debt before repayment is 4.8 years.
