This important step in the debt restructuring process will save $11.4 billion in debt service costs over the next three years.
The government reached agreements with Ukraine’s Committee of Eurobond Owners on the restructuring of external debt payments. Prime Minister Denis Shmyhal announced this on Telegram on Monday, July 22.
“We are restoring debt sustainability Today we have reached agreements in principle with the Committee of Eurobond Owners of Ukraine,” he wrote.
According to Shmygal, this is an important stage in the debt restructuring process, which will save $11.4 billion in debt payments over the next three years and $22.75 billion through 2033.
“In this way, we can free up resources for urgent needs: our defense, social protection and reconstruction,” added the head of government.
Earlier in June, it became known that Ukraine’s negotiations with private creditors on debt restructuring of more than $20 billion did not bring results. If a compromise is not reached, then Ukraine could default in August.
Demand for debt restructuring intensified after international rating agency S&P Global Ratings downgraded Ukraine’s credit rating.
And on July 18, it was reported that the Verkhovna Rada approved the suspension of external debt payments.
Source: korrespondent
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