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Ukraine to freeze debt repayment to Cargill Financial, others this fall

The document also determines the procedure of making payments to lenders the country would have to make even if reaching a debt restructuring agreement

MOSCOW, August 28. /TASS/. Ukraine halts repayments of approximately $700 mln debt to Cargill Financial from September 3, $825 mln debt on Ukrenergo debentures from November 9, and on state derivatives of 2015 from May 31 of the next year, according to the decree of the Ukrainian government.

The decree posted on the website of the Ukrainian Cabinet introduces amendments to documents approved on July 31 on the basis of the law on the Ukrainian debt repayment freeze. The new decree updates the terms of halting payments towards certain liabilities and their full scope. The document also determines the procedure of making payments to lenders the country would have to make even if reaching a debt restructuring agreement. Ukraine suspended the repayment of liabilities under Eurobonds from August 1.

It became known on June 17 that Ukraine proposed to its lenders to write down from 25% to 60% Eurobonds because it cannot honor its obligations. The parties agreed later to write down 37%. Fitch Ratings lowered the long-term rating of Ukraine to the limited default level.