KYIV, September 22 – Ukraine’s government plans to issue new 10-year bonds worth Hr 10.5 billion to the central bank to restructure overdue debt in OVDP discount treasury bills, a government draft order showed on Friday. First Deputy Prime Minister Yuriy Yekhanurov told reporters the government would consider the plan at a meeting later in the day. “I think we will approve the draft order at today’s government meeting,” he said.
Ukraine’s central bank has been the main buyer of domestic debt since 1998, when foreign investors deserted the market following a financial crisis and commercial banks were discouraged from purchases after several debt restructurings.
The Finance Ministry last week failed to repay a treasury bill issue, putting it in technical default, though officials on Thursday said they had completely repaid bill holders.
