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Ukraine intends to notify the bondholders of state-owned Ukreximbank that the bank will announce a debt default, Ukrainian Minister of Finance Natalia Jaresko said on Friday.
Jaresko made the announcement about the bank in Washington while visiting the International Monetary Fund, Ukrainian magazine Novoe Vremya reported, with reference to the Financial Times.
Jaresko said that a three-month grace period for repayment of Ukreximbank’s securities was critical for the overall agreement on restructuring of Ukrainian eurobonds.
A small group of investors are against the agreement with the holders of securities issued by Ukreximbank, and exepect the full and timely repayment of the bonds due on April 27 in amount of $750 million. In this regard, the bank was not able to get the consent of a majority of creditors regarding installment payments.
Reaching a deal with the creditors on debt restructuring is a condition Ukraine must fulfill to receive the next tranche of its bailout from the International Monetary Fund.
As UNIAN reported earlier Ukreximbank intends to postpone repayment of a five-year $750-million Eurobond without changing the terms of interest payment and without writing off the principal.