The Verkhovna Rada has established a temporary investigation Commission (FAC) to investigate the situation in connection with the conclusion of the agreement between the Ministry of Finance and the special Committee of creditors on restructuring the external debt of Ukraine in 2015.
As the correspondent of Agency “Interfax-Ukraine”, the resolution No. 2163 voted 291 MP with the necessary minimum of 226 votes.
As noted in the explanatory note to the decree, in March-August, 2015 the government of Ukraine and the creditors ‘ Committee of Ukraine carried out a complex of measures aimed at reducing the debt pressure on the economy and the risk of default. As a result of the government and Finance Minister Natalia Yaresko negotiations with the club of Ukraine’s creditors agreed to a debt restructuring of the country.
Restructuring part of the external debt provided an immediate write-off 20% of the principal amount of such debt (about $3 billion), while increasing the weighted average coupon rate from 7.22% to 7.75% per annum. Repayment of bonds deferred for four years from 2015-2023 in the years 2019-2027
As compensation Ukraine issued additional securities – GDP-warrants (VRI). The mechanism VRI is effective only in the case that Ukraine’s GDP will reach $125.4 billion the amount of the payouts depends on the dynamics of GDP growth: the rate to 3% inclusive – payments are zero character, from 3% to 4% – 15% of each percent of GDP growth over 3%, from 4% to 40% of each additional percent. “Thus, as a result of Natalia Yaresko negotiations created absurd conditions in which Ukraine is uneconomical to pursue the course of economic growth”, – stated in the explanatory Memorandum.
The first payment of the GDP warrant will begin in 2022 and last until 2040. During this period, the creditors will receive at least $14 billion according to experts, stated in the explanatory Memorandum.
#Ministry of Finance