Ukraine on May 31, 2021, handled the first payment on government derivative securities, or the so-called GDP-linked warrants, in the amount of US$40.75 million.
This was reported by the Finance Ministry's press service in response to an inquiry from UNIAN.
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"On May 31, 2021, Ukraine handled the first payment on state derivatives in the amount of US$40,750,645.60," it said.
The payment was made relative to the 2019 reporting year, it added.
Additional placement of eurobonds
- Earlier, the Finance Ministry announced the need to pay US$40 million on the GDP warrants over GDP growth in 2019.
- In August 2020, the Finance Ministry carried out an additional placement of eurobonds maturing in 2020 in the amount of US$0.33 billion, which were fully used to complete settlements for the repurchase of government derivative securities (the GDP-linked warrants) on the open market, which became possible due to the amendments introduced into the law on the national budget of Ukraine in April 2020.
- On September 1, 2020, the Finance Ministry redeemed the second series of external government loan bonds issued during the debt restructuring in 2015. The total amount of the payment exceeded US$2 billion.
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Background
- In November 2015, Ukraine's Finance Ministry announced the state debt in the amount of US$18 billion had been partially restructured. New securities maturing from 2019 to 2027 with a yield of 7.75% per annum were issued along with government derivatives as part of a bond swap.
- According to the then Finance Minister Natalie Jaresko, investors participating in the debt restructuring would not receive payments on derivatives with Ukraine's GDP growth below 3% after 2020. However, they will be paid when the country's GDP growth exceeds the level.
- The State Statistics Service reported Ukraine's real GDP growth in 2019 stood at 3.2%.