Support The Moscow Times!

Ukraine Hopes for International Assistance in Bonds, Credit by End of 2015

Ukrainian President Petro Poroshenko Valentyn Ogirenko / Reuters

KIEV — Heavily indebted Ukraine may borrow $1 billion in November via a new sale of U.S.-backed bonds, part of a broader international support package Kiev expects to receive by the end of the year.

The Finance Ministry said on Wednesday it anticipated international assistance worth more than $3.2 billion up to the end of 2015, including $1 billion of U.S.guarantees in November.

It also expects to receive two credit payments of $500 million a piece from the World Bank in August and September and 600 million euros from the European Commission.

"It may be a new $1 billion issue of a U.S.-backed Eurobond, not earlier than in November," said a ministry source.

The Finance Ministry could not immediately confirm or deny the report of a possible bond sale.

Washington announced earlier this year that it could provide up $2 billion in loan guarantees to near-bankrupt Ukraine.

Kiev used the first tranche of the guarantees to back a $1 billion five-year Eurobond issue in May. Citigroup, JP Morgan and Morgan Stanley led the deal.

Ukraine's budget has swallowed up $4.7 billion of external financing since the start of the year.

Major donors to the country said financing would be contingent on the former Soviet republic remaining on track to meet the conditions of its loan program from the International Monetary Fund.

The IMF approved a $17.5 billion bailout program in March to support reforms in Ukraine, whose economy has been damaged by a 15-month military conflict with Russia-backed separatists.

Kiev expects the lender to decide on July 31 whether to disburse a second tranche of financial aid worth $1.7 billion. Ukraine has so far received $5 billion from the IMF.

Ukraine is continuing talks with creditors on restructuring $23 billion of external debt.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more