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. Last Updated: 07/27/2016

Ukraine Pledges to Meet Debt Payments




KIEV -- Ukrainian First Deputy Prime Minister Serhiy Tyhypko reassured investors that Ukraine would repay a $155 million ING Barings bond due in June but said debt restructuring talks must continue.


"It is our plan to fully meet all the obligations which we have before that bank [ING Barings]," Tyhypko told a news conference Tuesday in the Black Sea resort town of Yalta.


Ukraine must also make a final interest payment on the 17.5 percent bonds of about $13.6 million in June after paying the first semi-annual coupon in February.


Investors are worried about cash-strapped Ukraine's ability to service its debts, and Tyhypko's assurances are sure to be welcome. But, he added, Ukraine's delicate finances required the government to hold constant restructuring talks.


"As far as debt restructuring, in my opinion the government ought to be engaging in this activity all the time, and I mean this in relation to both domestic and external debt," he said.


Finance Minister Ihor Mityukov said previously there were no plans to restructure this year's $1.17 billion in foreign-debt servicing, most of which is owed to the IMF and the World Bank.