UPDATE: Ukraine can repay $3 bln bond if Russia demands early repayment
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MOSCOW/KIEV, Jan 12 (PRIME) -- Ukraine will be able to repay a U.S. $3 billion bond if Russia demands an early payment, 112 Ukraine TV channel said citing government sources on Monday.
“The sources added that Ukraine will manage to repay the bond to Russia in the amount of $3 billion from its reserves if Moscow demands an early payment,” it said.
Ukraine’s reserves fell to U.S. $9.9 billion as of early December, their lowest since 2009, and decreased 24% to $7.533 billion in December, the country’s central bank said in a statement.
The fall was caused by the repayment of a $1.65 billion debt to gas giant Gazprom and the exchange of $831 million by the regulator majorly to support settlements of national energy company Naftogaz Ukrainy, it said.
Russian Finance Minister Anton Siluanov has said that Moscow may demand an early repayment as Kiev has broken one of the terms of the loan – of debt not exceeding 60% of GDP, although there is no final decision yet.
The sources said that Ukraine will be able to avoid a foreign debt default.
“We have reached an agreement with the country’s core lender, an American fund. If we really implement reforms, there will be no default,” a source said.
Russia bought the tranche of Ukraine’s 2-year bonds in 2013. Ukraine has been paying coupons for the tranche timely so far.
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