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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Borrowing Peter To Pay Paul

25 May, 1999 - 00:00

The Financial Times in its May 19 issue predicts that
Ukraine will soon be in default as to its international financial commitments.

The Ukrainian Finance Ministry started negotiations with the ING Barings
Bank to restructure 80% government obligations worth $155 million, placed
via ING in August 1998 and maturing June 8, by issuing eurobonds. Using
this loan, the London newspaper continues, the Ukrainian government paid
its debt to the Japan's Nomura Co.

ING experts believe that Ukraine's commitments worth DM 1 billion ($337
million) and 500 million euros ($330 million) may also be in jeopardy.

The Finance Ministry proposes ING exchange 80% securities owned by it
for new coupon eurobonds and redeem 20% of the debt by paying in hard currency,
states the Center for Journalistic Research.

Presidential Aide Valery Lytvytsky is convinced that the Cabinet will
come to terms with ING Barings. He believes that the bank is interested
in lasting cooperation with Ukraine.

 

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