Ukraine will defer payments on its national debt with the US, and the Eurobond restructuring might include a partial debt write-off.

Ukraine and the US signed an agreement to postpone public debt payments with a group of Ukraine’s creditors from the G7 countries and the Paris Club.

At the same time, the debt sustainability analysis (DSA) of Ukraine carried out by the IMF provides for a partial write-off of the debt, so it is likely that such a write-off will be one of the points of Ukraine’s proposal to restructure its Eurobonds, which is expected soon.

“The IMF sees our national debt as sustainable with a debt-to-GDP ratio of 82% in 2028. At the same time, the IMF predicts that without restructuring, Ukraine’s national debt will grow to 91.2% of GDP in 2028 – and therefore, to achieve sustainability, Ukraine should reduce this debt by 9.2% of GDP,” experts note.

The IMF sees the potential for a write-off of state debt this year by approximately $15B. This is a significant amount, considering that the main source of these write-offs should be Eurobonds, with a total issued amount of $21.2B.