By KYIV. Dec 20 (Interfax-Ukraine) – The government of Ukraine has applied to the National Bank of Ukraine with a request to grant permission to Kyiv to repay the balance of payments on eurobonds on December 15 this year in the amount of $28.77 million of principal and $2.16 million of interest.
"Full and timely fulfillment of its debt obligations during martial law plays a key role in creating a positive credit history of the city of Kyiv. The city in December 2022 must finally pay off its external debt obligations. Failure to make this payment may lead to default, additional costs associated with debt restructuring, increased debt service costs and loss of reputation as a reliable issuer," the government said in resolution No. 1120 of December 9, published on its website.
According to it, Kyiv had already timely repaid the rest of the debt on these eurobonds, issued in total for $115.07 million at 7.5% per annum.
In addition, the government also turned to the National Bank to facilitate payment by Kyiv for the services of rating agencies: $30,000 to Fitch, $50,200 to Moody’s and $35,000 to S&P.
The Cabinet of Ministers explained the need to maintain the city’s ratings with two agreements with the EBRD and the circulation of three issues of the city’s bonds worth UAH 1.1 billion on the market.
