The Eurobonds, amounting to USD 1 bln, against US government guarantees are planned for issue in August, UBR reports.

Ukraine intends to conduct emission of Eurobonds for USD 1 bln against US government guarantees, the governmental source reported.

“We plan to conduct emission in August. We believe this will be suitable time for emission”, the source informed. At the same time it emphasized that before the emission of bonds Ukraine should round off negotiations with the International Monetary Fund on the Second Revision of 4-year reform program, approved in March 2015 as well as launch the electronic declaration of material condition.

According to UNIAN, on June 3 of the current year Ukrainian government signed the agreement with US government on provision of loan guarantees, amounting to USD 1 bln, to our country under contractual arrangements between top leaderships of both countries.

The agreement is the part of bi- and multilateral economic support of Ukraine and is aimed at supporting the program of economic reforms.

The funds, amounting to USD 1 billion, which will be attracted as a result of issue of bonds against US government guarantees, will be transferred to the general fund of state budget and will be used for social support of the most vulnerable segments of the population, including as a result of raising gas utility rates.

The agreement is the third loan guarantee from US government, and two previous guarantees allowed our country to attract USD 2 billion in 2014 and 2015 under record low rates on the external markets.

The Ministry of Finance also informed that the guarantees are provided upon the issue of Eurobonds, amounting to USD 1 billion, on international capital markets for the circulation period of 5 years with repayment in 2021, and the interest rate is forecast not higher than 2% per annum.