Ukraine’s private creditors have approved a debt restructuring deal, allowing the country to ease its debt burden and potentially re-enter capital markets once the war subsides, as reported by Bloomberg. The agreement encompasses outstanding sovereign and guaranteed Ukravtodor Eurobonds totaling Hr.20.47 billion ($497 million), with an additional Hr.24.3 billion ($590 million) in accrued interest.
An overwhelming 97.38 percent of Eurobond holders supported the deal, surpassing the required two-thirds majority. The restructuring will see bondholders waive $8.67 billion in claims, accepting nominal losses and reducing debt payments during the IMF program period.
Ukraine’s Finance Minister, Serhii Marchenko, expressed satisfaction with the near-unanimous support and highlighted the extension of the average maturity of Eurobonds by nearly four years. The new bonds are set to commence trading after the settlement date on Aug. 30, according to Bloomberg.
This development marks a significant step forward for Ukraine, which had increased its debt due to heightened defense spending following Russia’s 2022 invasion. Negotiations with bondholders to secure favorable debt restructuring terms were crucial in the country’s efforts to navigate its financial challenges effectively.
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