Ukraine Reaches $20 Billion Debt Restructuring Deal, Saving $11.4 Billion

Jul 22, 2024, 07:40 AM

Ukraine has reached a preliminary agreement with its bondholders to restructure over $20 billion of international debt. This deal, confirmed by the International Monetary Fund (IMF), involves extending the weighted average maturity of Eurobonds by nearly four years. The agreement is expected to save Ukraine $11.4 billion in debt servicing over the next three years and $22.75 billion by 2033. Prime Minister Denys Shmyhal announced that the freed funds will be redirected to critical needs such as defense and recovery efforts. Ukraine's government bonds jumped as much as 2.2 cents on the dollar following the announcement, with the 2034 maturity trading at 29.54 cents. The restructuring also includes outstanding bonds of Ukravtodor under the same terms. The Ad Hoc Creditor Committee, holding 22% of outstanding bonds, accepted nominal losses of 37% of their holdings across 13 bonds, forgoing $8.67 billion of claims.