Ukraine Sidesteps Financial Default Through Eurobond Restructuring Deal

Ukraine has reached an agreement with the Committee of Eurobond Holders of Ukraine regarding the restructuring of its external debt. Prime Minister of Ukraine, Denys Shmyhal, announced this development.

Today, July 22, Ukraine issued a statement on the London Stock Exchange, informing that as a result of closed meetings held from July 12 to 19 with the Committee of Eurobond Holders of Ukraine, significant agreements were reached regarding the restructuring of sovereign debt securities issued on international capital markets, amounting to $23.4 billion.

“We are restoring debt sustainability. Today, we have reached significant agreements with the Committee of Eurobond Holders of Ukraine,” Shmyhal stated.

He added that the completion of this debt restructuring agreement will create conditions for Ukraine’s swift return to the international capital market once the security situation stabilizes, in order to finance rapid recovery and reconstruction efforts in our country.

According to Shmyhal, this marks an important stage in the debt restructuring process, which will save $11.4 billion in debt servicing over the next three years and $22.75 billion by 2033.

This development allows Ukraine to allocate resources for urgent needs such as defense, social protection, and recovery.

Furthermore, this agreement ensures that Ukraine is no longer at risk of default, as had been previously discussed — on July 1st, The Economist published an article stating that foreign bondholders have not yet agreed to Ukraine’s request for a suspension of payments on its state debt. The article mentioned that “if this does not happen, Kyiv may declare default by August 1st.”