NBU sees no negative impact from Ukraine's non-payment of GDP warrants

The National Bank of Ukraine (NBU) sees no negative impact from Ukraine's non-payment of GDP warrants.

This was announced by Deputy Governor of the NBU Yurii Heletiy at a briefing on Thursday, Ukrainian News Agency reports.

"We do not see any negative manifestations. The negotiation process is underway and continues to work out the terms of restructuring. There is no negative," he said.

According to Heletiy, the National Bank has GDP warrants worth USD 44 million in its portfolio.

"As you know, a moratorium on the payment of warrants has been in effect since last year. Therefore, everything is in the hands of the government, under the control of the government and without risks to financial stability," the Deputy Governor of the NBU added.

As Ukrainian News Agency earlier reported, Ukraine failed to make a payment on these securities in the amount of USD 665 million by the due date on June 2.

Earlier, the Ministry of Finance reported that Ukraine would not make payments on government derivatives, the amount of which as of April 30 amounted to USD 665.4 million.

In August 2024, the Cabinet of Ministers decided to temporarily suspend payments on obligations under government derivatives of 2015 (GDP-warrants) from May 31, 2025, until a transaction (deal) with them is carried out.

In October 2015, the owners of 13 out of 14 issues of sovereign and state-guaranteed Eurobonds for a total amount of USD 14.36 billion and EUR 0.6 billion supported their restructuring.

During the restructuring, Ukraine issued GDP-warrants for the amount of Eurobonds written off by creditors.

Under the terms of the issue, investors claim a share of the real GDP growth (taking into account inflation) that exceeds 3% in 2019-2038, provided that nominal GDP (excluding inflation) exceeds USD 125.4 billion. The initiator of the issue was the then Minister of Finance of Ukraine, Nataliya Yaresko.

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