Ukraine has officially started restructuring its external debt.

The Ministry of Finance announced on the London Stock Exchange the specifics for exchanging old bonds for new-issue bonds. Ukraine invites holders of each series of sovereign bonds and existing bonds, totaling more than $20B, that are guaranteed by Ukravtodor to exchange them for new securities. The restructuring should be completed by August 27. Ukraine will pay additional funds to those creditors who agree to the terms by August 23.

The Government Commissioner for Public Debt Management noted that this is the transition to the decisive stage of the operation to restore Ukraine’s debt sustainability. If fully implemented, our state will reduce its debt by $8.67B and save $22.75B in debt payments by 2033.

It should be noted that the group of Ukraine’s creditors welcomed the agreement, in principle, that was reached between Ukraine and the special committee of creditors regarding the terms of Eurobond restructuring. Official creditors urged Eurobond owners to agree to Ukraine’s offer. The Group of Creditors of Ukraine includes Canada, France, Germany, Japan, the UK and the US.