Ukraine will ask investors for a delay in Eurobond payments for 2 years.
This is stated in the resolution of the Cabinet of Ministers No. 805 of July 19, Ukrainian News Agency reports.
The government wants to offer Eurobond holders a voluntary extension of the term of circulation of all Eurobonds for 24 months, as well as delay the payment of interest income on them for the same period.
"Transactions with public debt in 2022 are carried out before August 15, 2022 by amending the conditions for issuing bonds in agreement with bondholders," the decree says.
The final maturity date of each bond is deferred for a period of 24 months.
In case of their refusal, Ukraine will continue to serve the papers in accordance with the existing conditions.
Interest income on bonds continues to accrue at existing rates, and additional interest income is accrued on the amount of accrued main interest income at the same rates.
At the end of this deferral, the amount of the owners' income not paid at that time may be paid to the owners in full or by additional issue of the relevant bonds.
As Ukrainian News Agency earlier reported, Fitch Ratings, an international credit rating agency, downgraded National Joint Stock Company Naftogaz of Ukraine's Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC' following its consent solicitation to defer its debt servicing of its Eurobonds, including that due on July 19, 2022.
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