Kyiv said it reached an agreement in principle with international creditors to restructure government debt worth more than $20 billion, according to a July 22 filing with the London Stock Exchange. Shortly after Russia's full-scale invasion in February 2022, the government struck a deal with holders of its international bonds to freeze repayments. However, that deal expires on August 1. The new agreement "allows us to free up resources for our defense, social spending, and reconstruction," Ukrainian Prime Minster Denys Shmyhal said on X. The new deal will see creditors, including BlackRock, Pimco, and other major institutional investors, write billions off the nominal value of their holdings and agree to a new payment schedule. The group rejected a June offer by Ukraine that called for even steeper write-downs.
Ukraine Strikes Preliminary Deal To Restructure $20 Billion Debt
The new agreement "allows us to free up resources for our defense, social spending, and reconstruction," Ukrainian Prime Minster Denys Shmyhal said on X.