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Naftogaz again asks creditors to defer debt payment

If creditors approve the deferment of payments on Eurobonds, the released funds will be used to purchase gas for the heating season.

The Cabinet of Ministers calls on investors to support the proposals / photo ua.depositphotos.com

NJSC Naftogaz sent a request to Eurobond holders to defer payments on them for two years, similar to the conditions for restructuring Ukraine’s sovereign external debt.

This was reported by the press service of the Cabinet.

“Following the announcement by Ukraine on July 20 of the launch of public debt management operations and the adoption of Cabinet of Ministers Decree No. 670 dated August 1, 2022, on August 2, 2022, NJSC Naftogaz of Ukraine began the procedure for requesting Eurobond holders to amend the terms of its respective Eurobond holders are invited to agree on certain changes to the terms of such securities, including a two-year deferment of principal and interest payment terms, which are generally similar terms to the terms of the offer Ukraine made for government Eurobonds. message.

According to the report, if creditors approve the deferment of payments on Eurobonds, the released funds will be used to purchase gas for the heating season.

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“If approved, these Naftogaz Eurobond debt deals will help to further maintain foreign exchange liquidity in the country, allowing Naftogaz to focus its available financial resources on strategic priorities, such as acquiring enough natural gas to meet expected needs during heating season 2022/23…The Cabinet of Ministers is calling on investors to support the Naftogaz debt management proposals, which are part of Ukraine’s proactive management of its debt obligations, as well as the debt obligations of important government institutions, in cooperation with investors and taking into account priorities and strategic goals of Ukraine,” the statement reads.

As UNIAN reported earlier, on July 26, Naftogaz did not make the necessary payments on Eurobonds, thus there was a default on the company’s Eurobonds.

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