REUTERS
The Ministry of Finance has resumed coupon payments on Ukrainian eurobonds, according to a posting published on the ministry's website.
On March 1, 2016 the Ministry of Finance made the first coupon payment on the new eurobonds issued by Ukraine in November 2015 as a part of the completed debt operation with sovereign and sovereign-guaranteed debt, as well as after three tap issues as part of the restructuring of external borrowings of the city of Kyiv, Ukravtodor and Yuzhnoye State Design Office, according to the report.
The total amount of the coupon payment was $473.313 million. Thus, the holders of the restructured 13 issues of sovereign and sovereign-guaranteed eurobonds, eurobonds of the city of Kyiv as well as the creditors of the restructured loans to Ukravtodor and Yuzhnoye State Design Office who participated in the debt operation have already received their coupon payments on the new notes, according to the ministry.
As is known, the said restructuring was done to reduce debt burden on the Ukrainian economy. Following the restructuring, the total amount of payments under the restructured external borrowings was reduced by $3 billion. The repayment of further $12 billion was postponed to after 2018. Thus, savings for the state budget achieved from the restructuring amount to almost UAH 64 billion both in interest and principal payments in 2016 alone.