Ukraine will not make payments on government derivatives. This does not threaten cross-default — Finance Ministry

Ukraine will not make payments on government derivatives, the amount of which as of April 30 amounted to USD 665.4 million.

The Ministry of Finance of Ukraine reported this on Friday, May 30.

The Ministry said that the payment on government derivatives should be made next Monday, June 2.

"At the same time, Ukraine reminded the owners of government derivatives that in accordance with the government decision of August 27, 2024, a moratorium on payments on these instruments is in effect," the department noted.

The Ministry recalled that this moratorium will remain in force until the restructuring process of the above-mentioned payments is completed.

In addition, compliance with the moratorium does not lead to cross-default on obligations under foreign government loan bonds and does not pose a threat to the financial stability of the state.

The Ministry of Finance added that the moratorium on payments on derivatives is part of a broader strategy of Ukraine, which provides for fair and equal treatment of all creditor claims.

As the Ukrainian News agency earlier reported, on Thursday, May 29, the National Bank of Ukraine announced the achievement of a staff-level agreement (SLA) on the 8th review of the IMF's extended financing program.

As a reminder, on May 26 it became known that the National Securities and Stock Market Commission would restrict traders' transactions with foreign currency government bonds.

Later, the NBU explained why restrictions on transactions with foreign currency government bonds were introduced.