Ukraine, the G7 countries, and the Paris Club agreed to the suspension of official debt payments by Kyiv.
Ukraine agreed to postpone the payment of the national debt
The Ministry of Finance reports that on December 21, Finance Minister Serhiy Marchenko signed amendments to the Memorandum of Understanding on the suspension of payments on the official debt with a group of official creditors of Ukraine from the G7 and Paris Club countries.
This will allow the extension of the Memorandum of Understanding on the suspension of payments on government and government-guaranteed debt until the end of March 2027, which corresponds to the end of the current EFF program of the IMF.
Reaching today's agreement on the revision of debt obligations allows to reduce the burden on the budget until the end of the IMF program and to save currency liquidity to ensure social expenses. This voluntary suspension of debt payments is part of a package of international support in the amount of $122 billion, provided by Ukraine's partners, Serhiy Marchenko noted.
The Paris Club is an informal organization that unites the governments of 21 creditor countries (Germany, USA, Italy, Japan, France, Switzerland, Spain and others).
State debt of Ukraine
As of October 31, 2023, Ukraine's state and guaranteed debt amounted to UAH 4,958.37 billion, or $136.35 billion.
The external debt is UAH 3,373.78 billion (68.04% of the total), or $92.77 billion. The domestic debt was UAH 1,584.59 billion (31.96%) or $43.57 billion.
In the budget for 2024, UAH 627 billion is provided for repayment of the state debt and another UAH 420 billion for its servicing.
