The postponement of payments for Eurobonds of the country and state-owned companies is still open.
Holders of approximately 93% of the nominal value of Ukrainian GDP- of warrants in circulation, approved Ukraine's proposal to postpone payments and review the conditions regarding them. Such a proposal was supported by about 91% of such owners who voted “for”.
“Accordingly… the necessary quorum has been reached and Ukraine has received the necessary consents in favor of the Emergency Decision,” the stock exchange said in a statement on Tuesday.
According to the published information, these results are preliminary, and Ukraine will announce the final results after meeting on August 10, 2022, which will also consider a proposal to postpone payments on Eurobonds of the country and state-owned companies under state guarantees.
The deadline to vote for them is 5:00 p.m. New York time on Tuesday, August 9. The support of more than 2/3 of the holders of Eurobonds of all issues and more than 50% of each issue is required.
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As reported, Ukraine On July 20, it offered owners of Eurobonds to postpone all their payments and repayment terms by two years from August 1, while maintaining the current yield rate. After this period, interest can be paid immediately or capitalized.
Regarding GDP-warrants, it was proposed to voluntarily postpone their payments due in 2023 by 14 months, to limit the possible amount of payments in 2025 to 0.5% of GDP for 2023, and to extend the period of circulation of these instruments for a year and at the same time to grant the right to Ukraine fully or partially buy them out in 2024-2027. Taking into account the extension of the circulation period of GDP-warrants for one year, the last reporting year becomes 2039, and the final date – the date of payment, which falls on 2041.
The proposal was also supported by a group of creditors of Ukraine consisting of Canada, France , Germany, Japan, Great Britain and the USA, noting that they strongly recommend the owners of Eurobonds of Ukraine to accept its proposal to postpone payments and revise the conditions regarding GDP- warrants.
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According to the initial conditions of the GDP warrants, in 2023 Ukraine must pay 0.06% of GDP, or about $120 million, and taking into account the purchase by the Ministry of Finance of the GDP warrants on the market for conditional amount of $604.262 million – about $97.6 million.
