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 Creditors' Committee put forward proposals on Ukrainian debt restructuring: 10 year delay, $15.8 billion in savings - Reuters

The Committee of Ukraine’s Creditors, which consists of Franklin Templeton, BTG Pactual Europe, TCW Investment Management and T.Rowe Price Associates funds, which own $8.9 billion of Ukraine’s debt, has put forward its proposals for the debt restructuring.

The offers of the Creditors Committee include a delay in debt repayment for up to 10 years and reducing the coupon rates, which will allow the country to save more money than stipulated by the IMF program.

This is stated by Reuters, citing a source familiar with the situation, Censor.NET reports.

According to the source, the savings over the next four years could reach $15.8 billion in comparison with $15.3 billion provided by the IMF program.

The source said that $15.3 billion will be saved by the principal debt, and another $500 million due to lower rates.

Read also: Parliament authorizes the Cabinet to impose moratorium on payment of foreign debt

The IMF program stipulates that the restructuring should result in the achievement of the three criteria: saving about $15 billion over four years, reducing the debt to 71% of the annual GDP by 2020 and a reduction of annual debt service to 10% of the GDP from 2019 to 2025 .

"The Committee cannot say that it agrees that these three criteria are best for long-term sustainability of Ukraine's economy, but in the interests of reaching an agreement the Committee put forward proposals that correspond to these three criteria," the source said.


 
 
 
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