Ukraine has started consultations to restructure the $20B state debt.

As Reuters writes, preliminary consultations with foreign bondholders regarding the restructuring of payments began ahead of schedule and have been going on for several weeks. Talks with bondholders were due to start early next year, but Ukraine is keen to agree on a restructuring as soon as possible in order to attract new financing.

Ukraine was allowed to postpone debt repayment until 2027 through a decision from the Group of Creditors, which includes all G7 states. This postponement is valid for the duration of the IMF program, which ends in 2027.

Last week, the head of the IMF mission, Gavin Gray, said that the IMF is ready to help Ukraine prepare to restructure its national debt. It is assumed that Ukraine will issue new bonds as part of any restructuring. The agency notes that investors are ready to accept Ukraine’s proposals but want additional guarantees from partner countries regarding war risks.