Photo from UNIAN
Ukrainian Finance Minister Natalie Jaresko says Ukraine has managed to restructure $12 billion in public debt, which helped significantly reduce pressure on public finance.
"We have restructured $12 billion of debt. Just as an example: in 2016, we would have to pay $2.8 billion [for servicing the public debt]. Instead, we will pay $574 million," she said at a "Focus Ukraine: Global Export Credit Agency and Multilateral Financial Institutions" strategy meeting in Kyiv on January 28.
Jaresko also noted that the restructuring enabled Ukraine to write off or postpone the maturities under a large part of the debt.
"We have agreed to reduce the principal payments by $11.5 billion by 2021," the minister said.
As UNIAN reported earlier, on August 27, 2015 Ukraine and the creditors' ad hoc committee reached an agreement on the restructuring of public debt, totaling $18 billion. The restructuring involves a complete write-off of $3 billion, deferral of payments under the principal debt for four years, as well as the establishment of a single 7.75% interest rate for the bonds. The majority of holders of Ukraine's eurobonds to be restructured agreed to the general terms of the restructuring of Ukraine's debt, except Russia. It refused to participate in Ukraine's debt restructuring deal, threatening to sue Ukraine.
On November 11, 2015 the Cabinet of Ministers approved the terms of the issue of new eurobonds and derivatives to finalize the ongoing state debt restructuring process.
Thus, Ukraine has managed to restructure a total of $12 billion of debt, excluding a $3 billion write-off, as well as a $3 billion debt owed to Russia.
Earlier Jaresko stated Ukraine would not offer Russia new restructuring terms regarding a $3 billion eurobond issued by Ukraine in 2013 and held by Russia's National Wealth Fund, and which the International Monetary Fund had recognized as an official claim. Ukraine announced a moratorium on any payments of the Russian debt, including payment of $3 billion borrowed under Viktor Yanukovych's presidency. It is noted that the format of the restructuring of the Russian debt may differ from the restructuring operation carried out by the Ukrainian government in August-November 2015.