Ministry of Finance of Ukraine redeemed US $ 1 billion Eurobonds

5/17/19

On May 16, 2019, the Ministry of Finance of Ukraine repaid the first issue of the US guaranteed notes. The total payment amount exceeded USD 1 billion.

A US USD 1,000,000 guaranteed notes were issued in 2014 with an interest rate of 1,844% per annum.

Two other issues under the US guarantee were made in 2015 and 2016, both under the rate of less than 2% per annum. The repayments of these Eurobonds will be made by the Ministry of Finance in May 2020 and September 2021.

"The agreement on concessional borrowings with the United States gave Ukraine resources and time for necessary transformations and helped to build the foundation for economic growth. We thank all our international partners who provide Ukraine with continuous support. On the other hand, we stick to securitization approach and conduct a well-balanced debt policy as stated in the Medium Term Debt Management Strategy, - says Oksana Markarova, the Minister of Finance of Ukraine. – Facilitating credit assistance guaranteed by international partners or with a lower rate of interest allows Ukraine to force reforms and as the result raise ratings and remain investors` trust.

By the end of 2018, the level of public debt to GDP has fallen to 60.9%, and the first quarter of 2019 resulted in the ratio of less than 60%.

Other priorities of the Ministry of Finance identified by the State Debt Management Strategy include strengthening relations with investors, attracting international investors to the domestic bonds market and improving the Ukraine’s sovereign rating.

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