Ukraine’s lenders have agreed to postpone payment of its $20 billion (19.4 billion euro) due to the Russian invasion having a significant negative impact on the country’s economy. 

“Investors in Ukraine’s foreign debt agreed to postpone payments until 2024. It allows Ukraine to maintain macro-financial stability and strengthen economic sustainability”, Ukrainian Prime Minister Denys Shmygal said on Twitter.

“Ukraine will save almost $6 billion on payments, Shmyhal added. “These funds will help us maintain macrofinancial stability, strengthen the sustainability of the Ukrainian economy, and improve the power of our army.”

According to the finance ministry, holders of approximately 75% of Ukraine’s debt agreed to the pause.

Last month, a group of Western nations, including Britain, France, Germany, Japan, and the United States, agreed to let Ukraine defer interest payments on its debt and invited other nations to participate in the initiative.

Advertisement

“The two-year debt freeze makes sense because even if the war ends soon, Ukraine’s situation is not going to improve overnight,” stated Stuart Culverhouse, chief economist at the research company Tellimer in London.

“Creditors were even surprised that the country decided to be current on the bonds until now.”

Among the largest holders of Ukraine’s debt, whose market value has plummeted by more than 80% since a build-up of Russian troops on its borders began late in 2021, are BlackRock Inc (BLK.N), Fidelity International, Amia Capital, and Gemsstock Ltd.

Russia to Upgrade Oniks Anti-Ship Missiles for Attacks on Ukraine
Other Topics of Interest

Russia to Upgrade Oniks Anti-Ship Missiles for Attacks on Ukraine

Moscow is to upgrade its Oniks anti-ship cruise missiles to enable them to strike Ukrainian cities with greater accuracy according to Russia’s state-run media TASS.

About $2.6 billion of GDP warrants, a derivative security that causes payments linked to a country’s gross domestic product, can be changed thanks to a separate but related consent solicitation that was granted by creditors.

Separate solicitations similar to the one planned by the sovereign have been accepted by creditors of Ukravtodor and Ukrenergo, two state-owned enterprises with government guarantees on their debt.

Advertisement

 

To suggest a correction or clarification, write to us here
You can also highlight the text and press Ctrl + Enter

Comments (0)

https://www.kyivpost.com/assets/images/author.png
Write the first comment for this!