Ukrtelecom to restructure debt to repay loans (Ukraine)

www.WirelessFederation.com/news: Restructuring of the foreign debt has been seeked by Ukrainian state-owned fixed line, broadband and 3G mobile. USD55.6 million loan installment to Credit Suisse First and Deutsche Bank was due to be repaid on February 25.

However, it was later decided that USD14 million of this amount will be paid on the agreed date and the remainder within three months. The debt was issued in 2005 and Ukrtelecom began making twice yearly payments in 2008. However, like all the other companies in Ukraine the telco also faced significant challenges caused by the worldwide economic slump leading to a weakening of the local currency.

According to a letter from the company’s chairman of the board to the country’s communications authority, Ukrtelecom is conducting talks with the creditors for a delay of the repayment date for 75% of the payment.