Ukraine isn’t concerned about potentially missing a payment on GDP warrants, even with the risk of default.

During a recent meeting with investors in London, Government Commissioner for Public Debt Management Yuriy Butsa emphasized that Ukraine will not hasten to restructure the 2015 government derivatives (GDP warrants), even in the event of default.

“They made it clear that there is a moratorium and … non-payment on these obligations will not cause a cross-default on the bonds,” one investor informed Reuters.

Over $500M is due on May 31, directly tied to 2023’s economic growth of 5.3%. The Cabinet of Ministers has put a moratorium on this payment due to the failure to reach a restructuring agreement.

Meanwhile, Ukraine is proactively engaging with stakeholders and collecting market feedback to find the best approach for settling the warrants.

The National Bank of Ukraine also holds GDP warrants, amounting to roughly $43.8M, or 1.4% of the total government derivatives. The largest holder remains the Ministry of Finance, which possesses around 20%. Due to economic growth, the National Bank generated $1.6M: $0.6M in 2021 and $1M in 2024.