ALBAWABA - Amidst its protracted 28-month conflict with Russia, Ukraine announced on Monday that it has reached an initial agreement to restructure over $20 billion of its outstanding debts to a group of foreign commercial creditors.
In a significant development, the creditors have reached an agreement to waive a substantial portion of the face value of the government bonds they possess. This move, as noted by the New York Times, will enable Ukraine to save a staggering $11.4 billion over the course of the next three years, ensuring that crucial funds can be allocated towards supporting its afflicted military.
The agreement has been sanctioned by the International Monetary Fund, which has emphasized that the provision of financial aid to Ukraine is contingent upon the nation's capacity to accomplish the reduction of its debt.
Ukraine’s prime minister, Denys Shmyhal, noted in a statement on X (formerly Twitter) that “this is an important stage of the debt restructuring process, which will save us $11.4 billion in debt servicing over the next three years and $22.75 billion by 2033,” saying “we are on the path to restoring debt sustainability.”
The International Monetary Fund (IMF) expressed its approval of the deal and affirmed that it is in line with the existing program, stating that it would be "essential to bring Ukraine's debt burdens to sustainable levels, thereby ensuring room for critical spending and supporting growth."
