The Ministry of Finance of Ukraine published the edited offer to private creditors

Ukraine has released the revised Offer to private creditors, which incorporates the reduction of the principal amount of the debt, But the recovery value of the bonds if the economic situation in Ukraine will improve faster than forecast, according to a report of the Ukrainian Ministry of Finance.
"Proposal to creditors has absorbed a significant decrease in principal amount of maturity of the debt and the change of the coupon, will ensure the achievement of an acceptable level of debt burden in the medium term, reducing the pressure on the balance of payments and financing requirements. The proposal Also includes the introduction of the tool cost recovery for bondholders in case the situation in Ukraine will improve faster than indicated in the forecasts of the EFF Program supported by the IMF. The Ministry agitates the Committee immediately sit down at the negotiating table to reach agreement on restructuring ", - quotes the text of the message UNIAN.
the Ministry stressed that Ukraine is experiencing serious solvency problems, and for this reason increase the debt payment period as offered by the lenders, would not be sufficient to resolve the issue." The main reason for debt relief is supposedly $ 40 billion of loans granted to Yanukovych's regime, - stressed in the Ministry of Finance.- in addition, for the repayment of debt are able to be used by the international reserves of the National Bank of Ukraine, because such use of reserves will not give the opportunity to improve the monetary system of Ukraine, than in extreme need of our country. In this regard, the proposal by the creditors Department to use $ 8 billion of reserves to pay 40% of the sovereign debt cannot and will not be accepted ". Before the last working day of the week the Deputy head of the Ministry of Finance of Russia Sergey Storchak said that the probability of payments Ukraine Russia nearest coupon on Eurobonds is close to 100%. Ukraine has expressed readiness to pay. On the first day of the week the head of Ukraine Petro Poroshenko said that he does not consider it necessary to pay repurchased Russia Eurobonds price of $ 3 billion, because they, in his vision, were " bribe Yanukovych ". Explaining this message, the President's press Secretary Dmitry Peskov said that the Kremlin is seeking clarification, Lee refuses to Kiev from the continuity of obligations to the Russian Federation and among them financial. Remember, in the early winter of Kiev is obliged to return Russia $ 3 billion. But the Ukrainian Ministry of Finance is trying so hard to give up on Russian government debt in a bid to reduce its status to a commercial debt. Although in reality insinuatio regarding the status of government debt is irrelevant, as the Supreme leaders of Ukraine sign in his complete incompetence. On Thursday, Deputy Finance Minister Sergei Storchak said that Russia hopes to receive 22 June 75 million payment from Ukraine for the loan, with any fact of non-payment will be perceived by Russia as an " event of default ". On may 19, the Verkhovna Rada of Ukraine adopted the law that will give the ability to suspend payments on restructured debt. The Russian President Vladimir Putin called the decision of Kiev weird. In his vision, the Declaration on the fact of default suggests a low level of professionalism. Also, according to Putin, Russian banks have loan portfolios to Ukraine in the amount of 24-25 billion.


sections: Politics