State-owned railroad in technical debt default

State-owned railroad in technical debt default



13 травня 2015 года
ICU

The MoF announced yesterday that state-owned railroad monopoly Ukrzaliznytsia is in technical default on UAH32bn of debt and has begun debt restructuring talks with creditors. Here is a link to the statement. The MoF stated that the domestic debt owed to state banks is secured and outside the perimeter of debt which is subject to restructuring. The Transportation Ministry issued a statement of support for the company and its operations, and pledged a future investment program. In our view, this Ukrzaliznytsia debt case is similar to other state-run institutions, like Ukreximbank, that have become overly indebted. As such, it most likely will seek a debt restructuring with no principal reduction.

Источник: ICU

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