Ukraine has told investors that it expects to restructure about $20 billion of international debt by August 1, 2024, in order to maintain access to international markets and meet the requirements of the International Monetary Fund (IMF).
This was reported by two Reuters sources after a telephone conversation between the Ministry of Finance and creditors on July 1.
Ukraine has $19.7 billion outstanding on its international bonds and owes $2.6 billion on GDP warrants.
According to sources, Ukraine also intends to include GDP warrants in its efforts to restructure international bonds worth about $20 billion.
Reuters notes that the conversation effectively marks the beginning of Ukraineʼs renewed efforts to engage with investors after formal restructuring talks last month ended without a deal.
The government commissioner for managing the state debt of Ukraine Yurii Butsa, who manages the countryʼs interaction with creditors, took part in the conversation. He was joined by government representatives and head of the IMF mission in Ukraine Gavin Gray. From the creditorsʼ side, members of the Special Committee of Creditors, as well as investors who were not part of the group, joined the group.
"They believe that an agreement can be reached in the near future," said one of the publicationʼs sources.
- In August 2022, the owners of Eurobonds agreed to a two-year postponement of payments and their repayment terms. Ukraine has reached such an agreement regarding almost 75% of the total principal amount of securities in circulation. Most of Ukraineʼs creditors have suspended payment obligations until 2027.
- In October 2023, Reuters reported that Ukraine was discussing plans to restructure its $20 billion debt with foreign bondholders and the possibility of raising new financing.
- In May, The Wall Street Journal wrote that foreign creditors of Ukraine want to resume payments on the national debt as early as 2025.