Government is facing questions over its ability to honour two upcoming bond payments, worth a combined total of ¢7.59bn ($1.3bn), as uncertainty over the payments continues to linger.
The first bond, a 5-year bond worth ¢4.185bn ($732m), is due to mature on 6 February 2023, while a 2-year note worth ¢3.406bn ($599m) is set to mature on 20 February 2023.
According to the 2nd Amended and Restated Exchange Memorandum of the Domestic Debt Exchange Programme (DDEP), eligible holders of these bonds will not receive the final principal payment.
The memorandum also says that any accrued and unpaid interest on these bonds will be taken into account for calculating the Accrued Interest Payable.
However, the question of whether the government will pay the interest payment remains unclear.
The government’s stance on these payments is being closely monitored by investors and market analysts as uncertainty continues to persist.
Source: norvanreports.com