Ukraine has reached an agreement in principle with its private creditors and the Ad Hoc Creditor Committee to restructure more than $20 billion of international debt. The restructuring will save Ukraine $11.4 billion in debt servicing over the next three years and $22.75 billion by 2033. The savings will be redirected to critical needs such as defense and recovery. The agreement, confirmed by the IMF, will provide cash flow relief amounting to $11.4 billion for the duration of the IMF program. As a result, Ukraine’s government bonds jumped as much as 2.2 cents on the dollar, with the 2034 maturity trading at 29.54 cents. The weighted average maturity of Eurobonds will be extended by nearly four years. Additionally, the outstanding bonds of Ukravtodor will be restructured under the same terms. The Ad Hoc Creditor Committee, which holds 22% of outstanding bonds, expressed satisfaction with the constructive agreement.
Tags: Politics, Debt, Ukraine
