Rada authorizes the government to impose a temporary moratorium on foreign debt payments

The Verkhovna Rada has passed a bill that gives the Cabinet of Ministers the right to suspend payments on foreign public debt until October 1, 2024. This was reported by MP Yaroslav Zheleznyak, UNN reports.

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"The Rada has adopted in two readings draft law No. 111396 on debt restructuring. "The total number of votes in favor was 231. It gives the Cabinet of Ministers the right to suspend payments on external public debt until October 1, 2024," Zheleznyak said on Telegram.

"In fact, if an official agreement on restructuring is not reached by August 10, when coupon payments on one of the government Eurobonds maturing in 2026 are due," Roksolana Pidlasa, chair of the Budget Committee, explained on Facebook.

According to her, the International Monetary Fund "in a working order expressed support for this draft law, as it will help strengthen Ukraine's debt sustainability, a commitment we made in a memorandum with the IMF.

According to Zheleznyak, the government is also "allowed to take over the state debt from the road company ($700 million + interest)." "The Restoration Agency (the former autodor) will not be able to restructure on its own," Zheleznyak said.

According to Pidlasa, the draft law "is an important element of the restructuring, which will save more than USD 10 billion on servicing and repayment of sovereign Eurobonds by the end of 2027.

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