The Ministry of Finance of Ukraine said that 97.38% of holders of $20.47B ($24.3B including interest) in Eurobonds support the restructuring agreement, exceeding the required two-thirds threshold. “This landmark decision is a decisive stage in Ukraine’s strategy aimed at preserving macroeconomic stability, ensuring the sustainability of the national debt and preserving the resources necessary to finance the country’s defense in the face of full-scale Russian aggression,” the Ministry of Finance emphasized.
The restructuring involves:
- a nominal 37% decrease in public debt, which reduces the volume of public debt by more than $8.5B
- a $11.4B reduction in debt payments during the IMF Program (reduction by more than 90%) and by $22.75B by 2033 (reduction by more than 75%)
- an increase in the average maturity of Eurobonds by almost four years (in addition to a 2-year increase in maturity in 2022)
Settlement of the agreement is expected to take place on August 30.