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The Ministry of Finance has postponed the repayment of Ukraine’s foreign debts, which will save up to $15B.

The Ministry of Finance has postponed the repayment of Ukraine's foreign debts, which will save up to $15B.

The Ministry of Finance has postponed the repayment of Ukraine's foreign debts, which will save up to $15B.

Finance Minister Serhiy Marchenko signed an amendment to the Memorandum of Understanding that postpones state and state-guaranteed debt payments with a group of official creditors from the G7 and Paris Club countries.

“This is part of an $122B international support package. Payments are suspended until the end of March 2027”, Marchenko noted.

The Ministry of Finance signed an agreement with representatives from Canada, France, Germany, Japan, the UK, and the US. This is the first stage of restructuring.

As part of the second stage, planned for the first half of 2024, negotiations will be held on postponing payments on external commercial debt. This applies to $3.2B in Eurobonds and GDP warrants issued during the state debt restructuring in 2015.

Through these two stages of restructuring, Ukraine will be able to save about $14.8 billion on debt payments through 2027. The agreements will also reduce external financing and help the NBU preserve gold and foreign exchange reserves and maintain exchange rate stability.

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