The Ministry of Finance of Ukraine issues bonds under US guarantee

The successful placement by Ukraine of Eurobond 1 billion dollars under US guarantees, the issue of which was launched by the Ministry of Finance 27 in May, will make it possible to reduce the cost of servicing our country's public debt, according to the ministry's website.

"These bonds, along with the recent macro-financial support from the EU, are intended to replace the existing debt with more savings in terms of service and cheap international bonds," the report said.

The Ministry of Finance notes that in case of successful placement these bonds, together with the debt operations of Ukreximbank and the expected debt operation of Ukraine, should reduce the debt burden of Ukraine and create potential conditions for the country to return to the path of economic growth.

“Like previous U.S. loan guarantees, the terms of the current borrowing guarantee agreement will strengthen Ukraine’s commitment to comply with the terms of the program with the IMF and take other steps necessary to strengthen the rule of law, the social safety net, further advance important structural reforms, and restore Ukraine’s economic growth,” emphasized in the message.

The Ministry of Finance recalled that the nominal value of each bond is 200 thousand dollars, the interest rate is 1,847% per year. Interest payments will be made twice a year on May 29 and November 29, the planned maturity of the bond is May 29, 2020.

As reported by UNIAN, the Cabinet of Ministers of Ukraine 26 in May unveiled a resolution drawing up the issue of 5-year Eurobonds carried out on the eve of the total amount of 1 billion US dollars guaranteed by the US government. Ukraine yesterday managed to place a bond issue at the 1,847% rate with a premium in the 32 base points to similar US government bonds.

At the end of January 2015, Ukraine and the United States signed a declaration granting credit guarantees to the United States in the amount of 2 billion dollars to the United States. At the same time, US Treasury Secretary Jacob Liu said that the US government intends to offer Congress to increase the loan guarantee package to 3 billion dollars. in the case of reforms in Ukraine in overcoming corruption, reforming the energy sector, improving the business climate.

In March of this year, the Minister of Finance of Ukraine Natalya Yaresko noted that the Ministry of Finance of Ukraine plans to issue Eurobonds in the amount of 1 billion dollars in April-May under the state guarantees of the US government.