Ukraine pauses state debt payments to navigate financial challenges
Ukraine suspends payments on foreign loans (Photo:Yelyzaveta Serhiyenko / Press Center of the NBU)
Ukraine's Cabinet of Ministers has decided to temporarily suspend payments on the 2015 external sovereign bonds starting Sept. 1, 2024, as part of a debt restructuring agreement.
This decision is outlined in Resolution No. 977, dated Aug. 27.
The document specifies that due to restructuring actions involving the state's external bonds from 2015, specifically the fourth to ninth series, payments on these obligations will be paused from Sept. 1, 2024.
Tthe government has also ordered a temporary suspension of payments from Sept. 3, 2024, on state obligations owed to Cargill Financial Services International, Inc. As of the end of July, these debts amounted to $703.7 million, according to the Ministry of Finance. From Nov. 9, 2024, payments on state-guaranteed obligations concerning the 2021 bonds of NPC Ukrenergo, valued at $825 million, will also be halted.
Furthermore, from May 31, 2025, payments on obligations related to the 2015 state derivatives (GDP warrants) will be temporarily suspended until the restructuring of these instruments is completed.
Ukraine reached a preliminary agreement with some of its private creditors to restructure approximately $23 billion in international debt in July 2024, potentially allowing the country to avoid default. The bondholders' committee agreed to accept nominal losses amounting to 37% of their assets across 13 bonds, waiving claims worth $8.67 billion, according to the agreement's terms.
Ukraine aims to save $11.4 billion over the next three years through a combination of lower coupon rates and extended repayment terms.
Will you support Ukraine’s free press?
Dear reader, as all news organizations, we must balance the pressures of delivering timely, accurate, and relevant stories with requirements to fund our business operations.
As a Ukrainian-based media, we also have another responsibility – to amplify Ukraine’s voice to the world during the crucial moment of its existence as a political nation.
It’s the support of our readers that lets us continue doing our job. We keep our essential reporting free because we believe in our ultimate purpose: an independent, democratic Ukraine.
If you’re willing to support Ukraine, consider subscribing to our Patreon starting from 5$ per month. We are immensely grateful.
Please help us continue fighting Russian propaganda.
Truth can be hard to tell from fiction these days. Every viewpoint has its audience of backers and supporters, no matter how absurd.
If conscious disinformation is reinforced by state propaganda apparatus and budget, its outcomes may become deadly.
There is no solution to this, other than independent, honest, and accurate reporting.
We remain committed to empowering the Ukrainian voice to push against the muck. If you’re willing to stand up for the truth – consider supporting us on Patreon starting from 5$ per month. Thank you very much.
Will you help tell Ukraine’s story to the world?
Twenty years ago, most people hadn’t even heard of Ukraine. Today, the country is on everyone’s lips and everyone’s headlines. War pushed us on the front page. But there are many other things we do that we are proud of – from music and culture to technology.
We need your help to tell the world Ukrainian story of resilience, joy, and survival. If you’re willing to back our effort, consider supporting us on Patreon starting from 5$ per month. We are immensely grateful.
Follow us on Twitter, Facebook and Google News
