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Cabinet approves domestic loan swap

The plan includes 229 bn hryvnia in bonds from the National Bank's portfolio.

Cabinet approves domestic loan swap
Photo: Photo: Max Levin

The Cabinet of Ministers at its meeting on Wednesday approved the restructuring of the domestic public debt worth 229 bn hryvnia.

The Cabinet of Ministers of Ukraine on Wednesday, 24 May approved the issue of government domestic loan bonds worth up to UAH 229 billion with redemption in 2025-2047 for the exchange of previously issued government bonds with redemption in June 2017-November 2030, owned by the National Bank of Ukraine.

The interest rate on the new bonds was set at an inflation rate for the last 12 months plus 1.5 percentage points.

In case of deflation, an interest yield will be paid at a rate of 1.5% per annum.

Subject to the swap will be UAH 221.6 billion at par in the bonds from the National Bank's portfolio at an average rate of about 12.85% per annum, as well as UAH 7 billion in the amount of a coupon yield on them, which was accrued and unpaid on the date of the transaction.