The government of Ukraine refuses to allow the company "Naftogaz" Eurobond payments

The Cabinet of Ministers of Ukraine did not agree to the allocation of funds to Naftogaz to pay off debt on Eurobonds, citing the company’s statement.

The company explained that they cannot take action on Eurobonds without the approval of the Council of Ministers, noting that the company’s accounts “have funds for making payments.”

The National Company, in its appeals to the government, reported that there were funds on the company’s accounts for making payments, as well as potential risks for it and the state as a whole in the event of a hard default, which would occur if the government did not agree to pay bondholders from Naftogaz.

On July 12, the company already applied to creditors with a request to defer payments on Eurobonds for $335 million, $600 million and $500 million maturing in 2022, 2024 and 2026, respectively. On July 15, the international rating agency Fitch downgraded the rating of Naftogaz to “C” – signs of default.

Earlier it was reported that Naftogaz plans to prepare a new debt relief plan after failing to get bondholders’ approval of its proposal to freeze bond payments worth about $1.4 billion.

Source: TASS

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