Cabinet introduces moratorium on Eurobond payments

The Cabinet of Ministers has introduced a temporary moratorium on payments for Eurobonds of Ukraine.

This is stated in government resolution No. 865 of July 31 "On the execution of transactions with state debt and state-guaranteed debt in 2024," the Ukrainian News agency reports.

"In connection with the implementation of transactions with the state debt under the bonds of external state loans of 2018 of the first series, from August 1, 2024, payments on the state's debt obligations will be temporarily suspended... for the period established by Article 1 of the Law of Ukraine "On peculiarities of the execution of transactions with state, state-guaranteed debt and local debt and state derivatives," the resolution reads.

The government also transferred the state-guaranteed debt of the former Ukravtodor to the perimeter of the state debt and instructed to carry out its restructuring.

It concerns Eurobonds of 2021 for the total amount of USD 700 million + interest.

At the same time, the Ministry of Finance has been instructed to place bonds of external state loans of Ukraine in 2024 in accordance with the agreed terms, which provide for payments to creditors for consent in the amount of up to USD 246 million.

As the Ukrainian News agency earlier reported, the Verkhovna Rada previously allowed the Cabinet of Ministers to suspend payments on the external state debt until October 2024.