Ukraine restructured its debt in the amount of 20.5 billion dollars and reduced it by 9 billion dollars. According to the Ministry of Finance, it was possible to save more than 11.4 billion dollars.
Points of attention
- Ukraine successfully restructured its debt in the amount of 20.5 billion dollars and reduced it by 9 billion dollars, which will lead to savings of 11.4 billion dollars.
- Thanks to restructuring, the country's debt payments to creditors have decreased by 93%, which will allow Ukraine to save about $22.8 billion by 2033.
- Debt restructuring was carried out to restore debt sustainability, increase state budget resources and preserve the macro-financial stability of the country.
- The agreement on the restructuring of Ukraine's debt was approved by the Group of Creditors and meets the goals of the IMF's debt sustainability program.
- More than 97% of investors supported the restructuring of Ukraine's debt, which indicates a successful outcome of the operation.
Ukraine restructured its debt: what does it mean
Ukraine announced the successful completion of the debt restructuring operation and settlement of thirteen series of state Eurobonds and state-guaranteed Eurobonds issued by Ukravtodor, - says the message of the Ministry of Finance.
Ukraine managed to restructure its debt of 20.5 billion dollars. Taking into account the capitalized interest, the total amount is 24 billion dollars.
During the restructuring, 13 series of government Eurobonds and one series of Ukravtodor Eurobonds with a guarantee from the state were exchanged for eight new bonds. Their total value reaches 15.2 billion dollars.
Ukraine's debt to investors decreased by approximately $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 about 60% (at a discount rate of 14%). - writes the Ministry of Finance.
According to the agency, this is one of the largest write-offs of the state debt
After restructuring, Ukraine's debt payments to creditors decreased by 93%. In three years, the country will save more than 11.4 billion dollars.
At the same time, maintenance costs and debt repayment will decrease. Yes, by 2033 they will decrease by 77%.
Taking into account savings on servicing and repayment of debt, Ukraine will save about 22.8 billion dollars by 2033.
Debt restructuring was carried out with several goals:
restoration of debt sustainability;
increase in state budget resources;
preservation of macro-financial stability.
The restructuring agreement was approved by the Group of Creditors of Ukraine. It also meets the goals of the IMF's debt sustainability program.
Investors supported debt restructuring
The head of the Ministry of Finance, Serhiy Marchenko, said that 97% of investors supported debt restructuring for Eurobonds.
We are proud that more than 97% of creditors supported our proposal for consent to changes in the terms of Eurobonds, Marchenko said.
Ukraine discussed the issue of restructuring for five months. Voting took place from August 9 to 27, 2024.
