The Ukrainian government is in active talks with international bondholders to restructure its $20 billion debt and is considering a partial write-off of this debt, Ukrainian Finance Minister Serhiy Marchenko confirmed.
The Ukrainian government decided to freeze payments on international bonds for two years in February 2022 in response to Russia’s large-scale invasion. Now, as that period approaches its end in August, Ukraine is trying to maintain access to international financial markets and is eyeing a new deal.
Serhiy Marchenko noted that negotiations are currently underway with creditors, including options for partial debt write-offs. Private bondholders are conducting limited negotiations with the government, which usually indicates significant progress.
Recalling past events, it is worth noting that in July 2022, Ukraine submitted a request for a two-year deferral of payment of external debt, and already in the fall, creditor countries agreed to postpone payments until the end of 2023.
Ukraine is preparing a plan to restructure its $20 billion debt to be sent to private bondholders.
