Talks with Russia's Bank VTB on prolonging a $2 billion loan are at the final stage, Economic Development and Trade Minister of Ukraine Petro Poroshenko has said.
"The talks [with VTB] are at the final stage. We either have to to repay [the loan], take a new one, or revise [the loan agreement]," he told reporters on Wednesday.
As reported, Russia’s VTB in June 2010 issued a six-month bridge loan of $2 billion to Ukraine at a rate of 6.7% per annum. Later VTB transferred the right on the loan to Ukraine to VTB Capital plc, part of VTB Group. The sum of $2 billion on this loan has to be repaid in June 2012: the six-month loan was extended three times for a total of 1.5 years.
According to the Finance Ministry, the repayment of the state debt in the second quarter is estimated at UAH 29.41 billion, including UAH 23.61 billion in June. Along with this, revenues from debt transactions over the second quarter are expected to reach UAH 33.55 billion, including UAH 17.65 billion in foreign funds: the largest sum of UAH 20.5 billion is to be raised in May.
The ministry also reported that it jointly with the National Bank of Ukraine is preparing the prospectus of a eurobond issue in 2012.
