RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of August 1, 2012 No. 815

About approval of the Procedure of control of the risks connected with public administration (local) debt

The Cabinet of Ministers of Ukraine decides:

Approve the Procedure of control of the risks connected with public administration (local) debt which is applied.

Approved by the Resolution of the Cabinet of Ministers of Ukraine of August 1, 2012, No. 815

Procedure of control of the risks connected with public administration (local) debt

1. This Procedure determines the methodological and organizational principles of control of the risks connected with public administration (local) debt (further - debt).

2. Terms which are used in this Procedure have such value:

budget risk - risk of considerable underfulfilment of revenues of the government (local) budget that can lead to increase in amount of the state (local) borrowings and/or default on obligations of debt servicing;

currency risk - risk of change of the official rate of national currency to foreign currency in which are nominated or obligations on debt are indexed;

interest risk - risk of increase of the floating interest rates provided by conditions of current commitments on debt;

transactions on debt management - the transactions directed to reduction of the risks connected with debt management and/or economy of means of the government (local) budget;

liquidity risk - risk of temporary lack of funds of the government (local) budget for accomplishment of obligations on debt as a result of possible bystry reduction of amount of quick assets as a result of emergence of unexpected current monetary commitments and/or difficulties with operational attraction of financial resources by borrowings;

the risk of refinancing - risk of reduction of reservoir of the capital markets which makes impossible borrowing in the amount necessary for refinancing of debt at reasonable price and leads to value addition of borrowings;

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