Ukraine and Bondholders Strike $20 Billion Debt Restructuring Deal
Ukraine has reached a preliminary agreement with its Eurobond holders to restructure over $20 billion in international debt. The agreement, which marks a significant step in the debt restructuring process, is expected to save the country $11.4 billion in servicing costs over the next three years and $22.75 billion by 2033. The restructuring will involve a 37% nominal haircut on Ukraine's outstanding international bonds, providing cash flow relief crucial for Ukraine's urgent needs, including defense, social protection, and recovery amid ongoing conflict.
The deal has received approval from the International Monetary Fund (IMF) and Ukraine's official lenders, the Group of Creditors of Ukraine. The IMF confirmed that the restructuring aligns with its $122 billion support package for Ukraine, set to expire in 2027. The agreement requires approval from at least two-thirds of all bondholders to finalize the debt restructuring. If approved, the restructuring will aid Ukraine's financial stability and recovery efforts once the security situation stabilizes.
