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Ukraine Grateful For Two-Year Freeze In Payments On Foreign Debt

August 10, 2022

Ukrainian Finance Minister Serhiy Marchenko says a deal to freeze payments on billions of dollars of overseas debt owed by Ukraine is a testament to investors' willingness to support Kyiv.

"Thanks to the solidarity with Ukraine shown by the private investor community along with the official public sector, we will be able to meet the needs of the state budget of the country in war(time)," Marchenko said in a statement.

Ukraine's overseas creditors earlier on August 10 backed its request for a two-year freeze on payments on almost $20 billion in international bonds.

According to a regulatory filing, bondholders have agreed to postpone sovereign interest and capital payments for 13 Ukrainian sovereign bonds maturing between 2022 and 2033.

Ukraine said it would save around $5 billion over the next 24 months as it manages its dwindling financial resources. The move also allows the war-torn country to avoid a debt default.

Ukraine is experiencing a monthly fiscal shortfall of $5 billion and is therefore heavily reliant on foreign financing from Western allies and multilateral lenders such as the International Monetary Fund and the World Bank to keep government services going.

The United States said this week it would provide an additional $4.5 billion to Ukraine's government, bringing to $8.5 billion its total budgetary support since Moscow launched its full-scale invasion on February 24.

Based on reporting by Reuters

Source: https://www.rferl.org/a/ukraine-freeze- overseas-debt/31982507.html

Copyright (c) 2022. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.