Ukraine will propose a $20B debt restructuring plan by May.

Ukraine has prepared a $20B debt restructuring plan for private bondholders and plans to present it by the beginning of May. It is noted that it is critical for Ukraine to conclude a debt restructuring agreement before the two-year payment freeze agreed with the holders of its outstanding international bonds expires in August.

As Reuters notes, the Ukrainian government hopes to reach an agreement no later than June. Ukraine is seeking access to capital markets and will have to issue bonds as part of its debt restructuring, but it can also raise new financing through the sale of covered and guaranteed bonds, and Ukraine’s international partners can provide collateral for these bonds.

Most of Ukraine’s bilateral creditors have suspended debt repayment requirements until 2027. Analysts expect Ukraine to ask its bondholders for an extension if it fails to reach an agreement with bondholders by the summer.