Ukraine to use $846 mln to buy govt notes maturing 2021, 2022

Ukraine, which sold a $2 billion eurobond on Thursday, will use $846.15 million to purchase outstanding government notes maturing in 2021 and 2022 to minimize the future debt burden, the Finance Ministry said on Friday.

(Adds comments of finance minister, details)

KYIV, July 24 (Reuters) - Ukraine, which sold a $2 billion eurobond on Thursday, will use $846.15 million to purchase outstanding government notes maturing in 2021 and 2022 to minimize the future debt burden, the Finance Ministry said on Friday.

"Notwithstanding turbulent times for the EM countries, Ukraine continues to implement its debt management strategy with proactive management of upcoming maturities to reduce refinancing risks," Ukrainian Finance Minister Serhiy Marchenko was quoted in a later statement as saying.

The ministry confirmed market reports that the new bond was priced at 7.253% and would mature in March 2033.

"This transaction complements our efforts to maximize the amount of concessional financing available to Ukraine in order to ensure a sufficient liquidity buffer in this current environment," said Marchenko.

Ukraine relaunched a debt sale this week, which Kyiv had been forced to abort in early July following the shock resignation of its central bank governor.

The sudden resignation of Yakiv Smoliy, who blamed "systematic political pressure" on the central bank, rattled markets and sparked concerns at the International Monetary Fund whose $5-billion stand-by assistance for Ukraine is contingent on the central bank's independence.

Kyrylo Shevchenko, appointed last week as the new governor, made reassuring noises to investors and the IMF about stability and keeping the central bank independent.

At its monetary policy meeting yesterday, the central bank decided to keep the key interest rate unchanged at 6.0% although politicians appealed to continue cuts. (Reporting by Natalia Zinets; Editing by Toby Chopra) ((Natasha.Zinets1@thomsonreuters.com;)) Keywords: UKRAINE DEBT/EUROBONDS (UPDATE 1)

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