Ukrainian govt confirms $1.5 bln Chinese loan guarantee for State Food and Grain Corporation restructuring
Ukraine's Cabinet of Ministers of has confirmed the state guarantee on a $1.5 billion loan provided to the State Food and Grain Corporation of Ukraine (SFGCU) by the Export-Import Bank of China in 2012.
"The decision allows for the restructuring of debt obligations under the loan agreement between SFGCU and the Export-Import Bank of China, signed in December 2012 for $1.5 billion over 15 years under a state guarantee," the Ministry of Environment and Agriculture of Ukraine said in a press release Friday.
According to the statement, a resolution titled "Certain Issues of the State Guarantee Granted in 2012 to Finance Projects in the Agricultural Sector," prepared by the Economy Ministry, was approved at the government meeting on September 10.
The resolution confirms the validity of the state guarantee provided in 2012 to secure SFGCU's debt obligations in connection with amendments to the loan agreement. These amendments concern, in particular, a deferral of principal and interest payments, as well as the capitalization of accrued interest during the deferral period.
The document also stipulates that the Ministry of Finance will reflect changes in SFGCU's debt volume when preparing Ukraine's draft state budget.
No further details were included in the press release.
"The implementation of this resolution will help reduce fiscal risks associated with the state's fulfillment of its guarantee obligations under SFGCU's loan," the Economy Ministry concluded.