of the statement:
Six months ago our team, led by Minister of Finance of
Ukraine Natalia Jaresko, launched unequal
negotiations with our debtholders. Over the past
five years it wasn’t us who have accumulated foreign loans worth about USD 40
billion. It's an incredible burden on the Ukraine’s state budget and on each
citizen of the country.
There was little hope that Ukraine would successfully
conclude negotiations with our external creditors. The default so much
expected by our enemies is not going to happen. Ukraine has reached an
agreement with the creditors' committee on restructuring and partial debt
Due to the efforts of the Minister of Finance and the
Government of Ukraine we have managed to get the following terms:
First. 20% of Eurobonds of the country has been written
off by our creditors. It means that the Ukrainian Government has written off
nearly 4 billion US dollars.
Second. The cost of service of our debts will not increase
in total spending, carried out by the State budget for loan servicing.
Third. In the next four years Ukraine will not repay the
primary loan and the bonds’ maturities which we had to pay starting from 2015
have been prolongued for four years.
The terms offered to Ukraine have never been offered to
any other country, since 2000, which haven’t defaulted on their debts. That
is an average amount of remission, which could be agreed without announcing
default, was not higher than 10%. Ukraine has managed to be forgiven 20% of
obligations to our bondholders.
We acclaim our lenders for they have accepted a proposal
of the Government of Ukraine, thus it is also their contribution to economic
and financial stabilization in the country.
Moreover, Ukraine will issue a tool to raise interest of
foreign creditors in the growth of the Ukrainian economy and the growth of
the gross domestic product of the country.
The decision of the Government of Ukraine provides an
opportunity to settle the economic and banking sector. This is another
contribution to the stability of the national currency and the banking sector
The Russian Federation didn’t join the creditors'
committee. And therefore, the Government of Ukraine officially declares that
Russia, under no circumstances, will get better terms than other lenders.
It's their decision. Either you accept our terms, or you will never get