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Ukrainian State Bank on the verge of default

Export-Import Bank of Ukraine appealed to the holders of its five-year Eurobonds worth $ 750 million to postpone their repayment for three months to July 27, 2015 April 27, said in a statement published on the website of the Swiss stock exchange, such information is reported portal News: The Economy.

Ukraine’s economy is on the verge of bankruptcy, and therefore the power in mid-March, initiated consultations with creditors to restructure sovereign debt, and the debt of state companies and banks.

Finance Minister Natalia Yaresko called state-owned banks “Ukreksim” and “Oschadny” in the list of issuers whose debt repayment Government would like to defer to reduce the debt burden on the budget.

Rating agency Moodys downgraded the sovereign credit rating of Ukraine to the level of “Ca”, noting “virtually 100% chance” of defaulting on debt of the country.

“Despite the fact that negotiations on the specific details of the restructuring are just beginning, Moodys believes that the probability of a forced exchange, and hence a default on government obligations of Ukraine is almost 100%.”
In an accompanying press release Moodys analysts pointed out that “the main reason for the downgrade was the announcement of a plan to restructure the majority of the issued Eurobonds Ukraine, as well as external debt of the public sector.”

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