Ukraine completed debt restructuring — it was reduced by $9 billion

Author:
Olha Bereziuk
Date:

Ukraine has successfully completed the operation to restructure state and state-guaranteed debt for almost $20.5 billion.

This was reported by the Ministry of Finance and the London Stock Exchange.

The restructuring process included the exchange of 13 series of government Eurobonds and one series of state-guaranteed “Ukravtodor” Eurobonds worth approximately $20.5 billion (almost $24 billion including capitalized interest) for eight new series of Eurobonds with a face value of $15.2 billion.

Due to this agreement, the state and state-guaranteed debt of Ukraine was reduced by almost $9 billion. This means a nominal reduction in the value of the debt by 37% from the first day of the agreement and a reduction in the net present value of the debt by approximately 60% (at a discount rate of 14%). This is one of the largest debt write-offs in recent sovereign debt restructurings.

Debt payments are reduced by 93%, resulting in savings of $11.4 billion over the next three years. At the same time, the costs of servicing and repaying the debt will decrease by 77% by 2033, which will save a total of $22.8 billion.