Ukraine reduces state debt by $9 billion after restructuring effort
According to the Finance Ministry, the savings represent "one of the largest debt write-offs in recent sovereign debt restructurings."
According to the Finance Ministry, the savings represent "one of the largest debt write-offs in recent sovereign debt restructurings."
Ukraine has received the necessary votes from private creditors to restructure its more than $20 billion in international bonds, providing the country with the necessary debt relief to continue financing its fight against Russia's invasion.
Ukraine's Finance Ministry announced on Aug. 9 the terms of the exchange of old bonds for newly issued securities, launching the process of restructuring Ukraine's external debt on Eurobonds.
Based on the deal, Ukraine stands to save $11.4 billion over the next three years and $22.75 billion by 2033, Prime Minister Denys Shmyhal explained.
Proposed by President Volodymyr Zelensky's Servant of the People party, the legislation seeks to postpone payments of international sovereign debt and state-guaranteed obligations past its August deadline.
With Ukraine desperately seeking cash to fund its defense and wartime budget needs, the country is running out of time before an August 1 deadline to agree with creditors on what portion of its foreign debt will be written off as a so-called “haircut.” In 2022, Ukraine and its creditors
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