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Ukraine says it paid interest on $3bn Russian loan

Published time: June 20, 2014 13:56
Edited time: June 23, 2014 05:22
Mark Wilson/Getty Images/AFP

Mark Wilson/Getty Images/AFP

Kiev has made its first coupon payment of $73.3 million on the $3 billion bond loan from Russia, according to Ukraine’s Finance Ministry.

The Ministry posted an official release on Thursday, three days ahead of the June 22 deadline.

In December, Russia bought $3 billion in Eurobonds from Ukraine to help it avoid a default. Russia said it expected a 5 percent return, which means Kiev has so far paid the first installment the $150 million interest accrued in 2014. Bond interest payments are calculated and repaid semi-annually.

The bond placement was organized by VTB, Russia’s second largest bank using money from the country’s $88 billion National Welfare Fund, and was placed on the Irish Stock Exchange.

The original plan was to issue a total of $15 billion of bonds, but Russia put the rest of the Eurobond sales on hold while Ukraine formed a new leadership after ousting then-President Viktor Yanukovich.

Ukraine still hasn’t made progress in paying off its $4.5 billion debt to Gazprom, Russia’s state owned gas company and the world’s largest gas producer.

Aid is pouring into Ukraine from various sources; the IMF has already delivered a $3.2 billion package of the total $17 billion promised, the European Central Bank has sent the first 100 million euro of a total 1.6 billion euro aid package, and the US has promised another $1 billion in aid.

Even with all the money coming in, there is still widespread agreement that Ukraine will default on its debt by the end of the year.

Comments (22)

 

Suzanne Majo De Kuyper 23.06.2014 22:54

The West has no problem with genocidally poisoning it's waters, soils and humans with Atomic effluvia. Netherlands has. US, UK Sanctions planned?

 

Suzanne Majo De Kuyper 23.06.2014 22:51

The United States is going to try and force the United Kingdom countries and the European Union countries to join the United fifty States as it openly steals Russia's sovereignty with all the criminal means at it's disposal. Obama is supposed to start this (he has!) and War Empress Clinton is to expand it to, in four or eight years, to a fractured into three pieces Russian Federation as the West contemplates owning China,
.

 

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