Ukrainian govt helps Kiev repay 2022 Eurobonds
MOSCOW. Dec 20 (Interfax) - The Ukrainian government has asked the National Bank of Ukraine (NBU) to permit Kiev to make the last Eurobond payment in the amount of $28.77 million of the principal debt and $2.16 million interest on December 15.
"The full and timely fulfillment by Kiev of its debt obligations during martial law plays a key role in creating its positive credit history. The city is supposed to clear its foreign debts in December 2022. Failure to make this payment might lead to a default, extra expenses related to the debt's restructuring, higher debt servicing expenses, and the loss of its reputation as a reliable issuer," Ukrainian media reported citing the government's directive dated December 9 and available on its website.
Kiev earlier repaid the outstanding debt on the $115.07 million of 7.5% Eurobonds on time.
The government also asked the NBU to help Kiev pay the services of rating agencies, particularly $30,000 to Fitch, $50,200 to Moody's, and $35,000 to S&P.
The government maintained that the city of Kiev needs to continue being rated based on two agreements with the European Bank for Reconstruction and Development (EBRD) and the circulation of 1.1 billion hryvni in three issues of the city's domestic bonds.
As reported earlier, the NBU's resolution dated February 24, 2022 On the Banking System's Operations During Martial Law prohibits banks from transferring forex assets from Ukraine abroad unless specifically authorized by the NBU based on the government's directives. Such directives, in particular, are supposed to contain a request for the NBU to authorize a relevant foreign currency transaction.