Friday, August 02, 2024

Ukraine has paid $ 200 million to owners of GDP-varantors

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Ukraine has paid $ 200 Million to owners of GDP-varantors

Friday, August 2, 2024, 13:06 - Yaroslav Vinokurov
Yahoo Finance
13 hours ago

Ukraine Made $200 Million Payment to Holders of GDP Warrants

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On August 1, the Ministry of Finance of Ukraine paid $ 200.6 million to the owners of GDP-varantors.
Minfin reported this in response to a request from the EP.
Payment for GDP-varantors consists of two parts:
payment for the consent of changes in conditions and interest in the amount of 130.1 million dollars,
as well as a deferred payment amount and interest in the amount of $ 70.5 million for GDP growth in 2021 (this payment Ukraine had to pay to the owners of the warrants in 2023).
"Note that about 20% of the $ 70.5 million will be returned to Ukraine as one of the largest tool data owners," – said in Minfin.
It adds that making a payment with the consent of changing the terms of issue of warrants (in the amount of $ 130.1 million) will allow Ukraine to buy out GDP warrants at their face value over the next 3 years.
Bloomberg.com
16 hours ago

Ukraine Made $200 Million Payment to Holders of GDP Warrants - Bloomberg

"According to the fundamental agreements reached with the owners of Eurobonds, Ukraine undertakes to ensure fair and equal treatment of the owners of GDP warrants in any future public debt management operations, as well as to adhere to the objectives, embedded in the analysis of the IMF's debt sustainability, – added in the Ministry of Finance.
Note that GDP-varantors – is a tool that Ukraine issued as a result of negotiations on debt restructuring in 2015.
The amount of payments on GDP-varantors depends on the growth of the Ukrainian economy in the base year: the higher the growth rate – the higher the payout. The payment, which will take place in 2025, will relate to the base year 2023. At that time, the Ukrainian economy grew by 5.3% – primarily due to a low comparison base with 2022 full-scale invasion.
Statista

Ukraine - gross domestic product (GDP) 2029 | Statista

In the context of economic recovery, the growth rate of Ukraine's GDP may exceed 4-5% per year, which will automatically significantly increase the amount of payments on GDP-warrants. Such payments to Ukraine will have to be made by 2041.
Bloomberg.com
17 hours ago

Ukraine Made $200 Million Payment to Holders of GDP Warrants - Bloomberg

The day before, Ukraine reached an agreement in principle with its creditors to carry out another restructuring of Eurobonds. At the same time, all necessary procedures are needed to complete the restructuring.
Payment for one of the issues of Eurobonds Ukraine was to be made on August 1.
In the future, the government has a Grace period until August 10, during which such a payment can still be made.
Otherwise, it will be considered that Ukraine has suffered a technical default.
Read more about debt restructuring in the publication: There will be no default. How Ukraine has agreed to reduce debt by a quarter
Reuters

How much money does Ukraine owe, and to whom | Reuters

PLEASE READ ONE MORE TIME

Friday, August 2, 2024, 13:06 - Yaroslav Vinokurov

Payment for GDP-varantors consists of two parts: payment for the consent of changes in conditions and interest in the amount of 130.1 million dollars, as well as a deferred payment amount and interest in the amount of $ 70.5 million for GDP growth in 2021 (this payment Ukraine had to pay to the owners of the warrants in 2023).

"Note that about 20% of the $ 70.5 million will be returned to Ukraine as one of the largest tool data owners," – said in Minfin.
It adds that making a payment with the consent of changing the terms of issue of warrants (in the amount of $ 130.1 million) will allow Ukraine to buy out GDP warrants at their face value over the next 3 years.

"According to the fundamental agreements reached with the owners of Eurobonds, Ukraine undertakes to ensure fair and equal treatment of the owners of GDP warrants in any future public debt management operations, as well as to adhere to the objectives, embedded in the analysis of the IMF's debt sustainability, – added in the Ministry of Finance.

Note that GDP-varantors – is a tool that Ukraine issued as a result of negotiations on debt restructuring in 2015.

The amount of payments on GDP-varantors depends on the growth of the Ukrainian economy in the base year: the higher the growth rate – the higher the payout. The payment, which will take place in 2025, will relate to the base year 2023. At that time, the Ukrainian economy grew by 5.3% – primarily due to a low comparison base with 2022 full-scale invasion.

In the context of economic recovery, the growth rate of Ukraine's GDP may exceed 4-5% per year, which will automatically significantly increase the amount of payments on GDP-warrants. Such payments to Ukraine will have to be made by 2041.

The day before, Ukraine reached an agreement in principle with its creditors to carry out another restructuring of Eurobonds. At the same time, all necessary procedures are needed to complete the restructuring.

Payment for one of the issues of Eurobonds Ukraine was to be made on August 1.

In the future, the government has a Grace period until August 10, during which such a payment can still be made.

Otherwise, it will be considered that Ukraine has suffered a technical default.

There will be no default. How Ukraine has agreed to reduce debt by a quarter

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What's this??? . . .Germany on North Korean Border

'European security linked closely to Indo-Pacific region'

German Defense Minister Boris Pistorius, speaking at the ceremony at the UNC's "Camp Humphreys" base near Pyeongtaek, south of Seoul, emphasized Berlin's commitment to peace and security in the region.

Germany joins multinational force monitoring Korean border

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German Defense Minister Boris Pistorius, speaking at the ceremony in Pyeongtaek, emphasized Berlin's commitment to peace and security in the Indo-Pacific.

an hour ago

Germany joins multinational force monitoring Korean border – DW – 08/02/2024

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He said European security is closely linked to security in the Indo-Pacific and that Germany will help protect South Korea's border with North Korea as part of the UNC.
"I'm convinced that, especially in times like these, when the world is shaped by crises and wars, we need to show unity," he said.
"We need to stand firm against those who want to undermine peace and stability, against those who attack our common order."

Germany officially became the 18th member of the US-led United Nations Command (UNC) in South Korea on Friday.
The UNC is a multinational military force that oversees affairs in the heavily fortified Demilitarized Zone (DMZ) between South and North Korea, which remain technically at war.
It was established in 1950 and tasked with restoring peace and enforcing the armistice while serving as a channel of communication with North Korea.
The UNC polices the border and has committed to help defend the South in the event of a conflict.

Berlin to commit personnel to tense North-South Korea border

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Germany joins South Korean border guard

Michael Bootcampf

2024 August 2 . 10:22 AM

2 min read

Germany joins South Korean border guard

There is still no peace treaty between South and North Korea. Soon, German soldiers will also be part of a UN mission to control the border of the rival nations, including a pledge to support South Korea in case of war.

Germany has joined the US-led United Nations Command (UNC) to monitor the border between South and North Korea. This also includes a pledge to support South Korea in defense in case of war. Defense Minister Boris Pistorius said that joining the UNC is a "clear sign" of Germany's commitment to peace and security in the Indo-Pacific region at a ceremony in the US military base in Pyeongtaek, South Korea.

. . .According to the US government, North Korea has recently supplied Russia with rocket launchers and several ballistic missiles. North Korean rockets are likely also being used in Russia's war against Ukraine. The US government believes that North Korea wants to receive military equipment from Russia in return for its support.

No Peace Treaty

Tensions on the Korean Peninsula have been increasing for months. North Korea has significantly expanded its rocket tests in the past two years and escalated its rhetoric against the US and South Korea. Dictator Kim has repeatedly called for stepped-up war preparations.

South and North Korea have been divided at the Demilitarized Zone since the Korean War from 1950 to 1953. There is still no peace treaty. North Korea is isolated and largely cut off from the international community. Due to its nuclear and rocket program, the UN has imposed sanctions on the country. Recently, North Korea has expanded its military and economic cooperation with Russia.

Germany's Defense Minister Boris Pistorius highlighted the importance of unity and standing firm against threats to the "common order," mentioned South Korea specifically as a country they are committed to defending within the Indo-Pacific region, and stated that Germany will be part of the UNC responsible for protecting South Korea's border with North Korea.

Additionally, Pistorius expressed concern about increasing tensions on the Korean Peninsula, the lack of a peace treaty between South and North Korea, and the growing close military cooperation between Russia and North Korea.