Ukraine has obtained a two-year moratorium on its debt
kyiv has obtained from its international creditors a two-year moratorium on its foreign debt, estimated at 20 billion dollars, announced the Prime Minister, Denys Chmyhal, in full Russian invasion of the country. “Investors in Ukraine’s external debt have agreed to defer payments until 2024. This allows Ukraine to maintain macro-financial stability and strengthen economic viability”welcomed Mr. Chmyhal on Wednesday evening on Twitter.
“We are grateful to the investors for accepting our proposal. Thanks to the solidarity with Ukraine shown by the community of private investors and the official public sector, we will be able to meet the needs of the Ukrainian people”for his part abounded the Minister of Finance, Sergii Marchenko, quoted in a press release.
A group of Western creditors including France, the United States, Germany, Japan and the United Kingdom had agreed on July 20 to a postponement of interest payments on the Ukrainian debt after a request from kyiv, urging other bondholders to do the same.
Ukraine’s economy has collapsed since the start of the war with Russia launched on February 24 and could see its GDP plunge by 45% this year, according to the latest World Bank estimates, which date from June. Measures to defer Ukraine’s payment of its bonds could save it at least $3 billion over two years, according to calculations by the Bloomberg agency.