KYIV (Reuters) -Ukraine’s parliamentary budget committee has recommended that lawmakers approve a law granting the government the right to suspend debt payments, its head Roksolana Pidlasa said on Thursday.
Ukraine is holding talks with investors to restructure its foreign debts in the middle of war with Russia, before a payment moratorium expires next month.
The draft law, published on the parliamentary website, includes a clause to allow the government the right to suspend payments on foreign debts if necessary.
“We will ask parliament to support this draft law at the next plenary session, as it is an important element of the restructuring that will allow savings of more than $10 billion on debt servicing on Eurobonds by the end of 2027,” Pidlasa said on Facebook.
Ukraine has $19.7 billion outstanding on its international bonds and owes $2.6 billion on GDP warrants – a fixed-income instrument with payouts that are linked to the strength of growth in economic output.
The warrants were created as a sweetener to creditors during Ukraine’s 2015 debt restructuring in the wake of Russia’s annexation of Crimea.
(Reporting by Yuliia Dysa and Olena HarmashEditing by Gareth Jones)
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