On November 9, 2024, NEC "Ukrenergo" announced the temporary suspension of debt payments for "green" sustainable development bonds issued in 2021 under a state guarantee. This decision became part of measures to restructure the debt within the framework of cooperation with the International Monetary Fund (IMF).
As the company explained, this decision is temporary and will be in effect until the debt restructuring is completed, which is planned in the coming months. At the same time, NEC "Ukrenergo" assures partners and creditors that the company continues to fulfill its current obligations aimed at ensuring energy sustainability of Ukraine, including preparation for the winter period and restoration of energy infrastructure.
Technical default: what does it mean?
According to the report, the suspension of payments is explained by a "technical default" that arose due to regulatory restrictions provided for by special laws and resolutions of the Cabinet of Ministers. This step is part of meeting the conditions necessary to receive financial assistance from the IMF. Technical default does not mean complete default of the company, but only a temporary stoppage of payments, which should be canceled after the debt restructuring is completed.
One of the main reasons for the suspension of payments is cooperation with the International Monetary Fund. Ukraine must fulfill the conditions, which include measures for financial stability and restructuring of the public debt, including in the energy sector. The decision is also part of the government's broader strategy to ensure the country's economic stability during the war.
Despite the temporary suspension of payments, NEC "Ukrenergo" assures that the decision will not affect the operational and financial stability of the company. It continues to fulfill its obligations, in particular in terms of preparing for the winter period, ensuring the protection of the power system and strengthening its stability in the conditions of martial law. After debt restructuring is completed, the company intends to resume regular payments.
It is expected that the debt restructuring process of NEC "Ukrenergo" will be completed in the coming months, after which the company will once again start fulfilling its financial obligations to investors. This decision is part of a broader policy of stabilizing the economic situation of Ukraine in the conditions of war and cooperation with international financial institutions, such as the IMF.
