Ukraine’s Finance Ministry announced the terms of restructuring the country’s external debt on Eurobonds, amounting to $23 billion. With a deal to freeze payments due to economic pressures from the Russian invasion expiring on Aug. 1, Ukraine invited bondholders to exchange their old securities for new ones by Aug. 27. The ministry emphasized that additional payments would be made to creditors agreeing to the terms before Aug. 23 to avoid a default.
The restructuring aims to facilitate Ukraine’s swift recovery post-conflict and pave the way for market re-entry. The Ukrainian parliament passed a bill allowing the government to suspend payments on external debt until Oct. 1, reflecting the country’s economic challenges amidst the ongoing crisis.