Photo from UNIAN
The Cabinet of Ministers of Ukraine has approved the re-profiling of domestic government loan bonds in the National Bank's portfolio for a total amount of UAH 219.6 billion, providing for their exchange for two types of bonds: long-term bonds for UAH 74.4 billion and long-term inflation ones for UAH 117.5 billion.
The relevant decree was adopted at a government meeting on Wednesday.
"We are changing our portfolio of domestic government loan bonds at the National Bank. We systematically reduce the debt burden on the state budget. We remove peaks that were created, both in external and internal obligations. We have peaks that we have already settled in 2019-2020 due to entering foreign markets... We have implemented this for external loans. We're taking similar measures on domestic loans," Ukrainian Finance Minister Oleksandr Danyliuk said, presenting the decision.
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"It is proposed to make an exchange of a part of the bonds for the amount of UAH 219.6 billion for two types – long-term bonds for UAH 74.4 billion and long-term inflation ones for UAH 117.5 billion... The operation is aimed at smoothing the repayment schedule, approximately UAH 12 billion each year, reducing the risk of refinancing and the need to raise funds by UAH 11 billion this year, by UAH 46 billion next year, by almost UAH 67 billion in 2019 and by 34.4 billion in 2020," Butsa said.