To that end, the restructuring will be carried out by the middle of 2024, said the head of the IMF mission in Ukraine, Gavin Gray.
“An ambitious external commercial debt restructuring should be carried out in the first half of 2024 to help restore debt sustainability while creating much-needed fiscal space,” he said.
The IMF clarified that the official moratorium regarding public creditors will last until the end of the program with the IMF in 2027, and the moratorium period for private creditors is expected to end in August 2024.
As a reminder, in October the IMF predicted an increase in Ukraine’s total public debt this year to 88.1% of the country’s GDP, and according to forecasts for 2025, public debt will exceed 100% of GDP.
It was reported that Ukraine had started discussions with foreign bondholders regarding the restructuring of $20B in payments ahead of schedule. This is necessary to attract new financing.
Earlier, Ukraine was allowed to postpone debt repayment until 2027 through a decision by a group of creditors, which includes all the G7 countries.