Debt restructuring: Ukraine suspends payments under Eurobonds

In view of the implementation of the debt restructuring agreement, the Cabinet of Ministers of Ukraine endorsed a decision to suspend payments under external state loan bonds dating back to 2015 from September 1, 2024.

The relevant resolution of the Cabinet of Ministers of Ukraine, No. 977, dated August 27, 2024, was published on the Government portal, an Ukrinform correspondent reports.

“In connection with the implementation of legal acts related to the public debt under external state loan bonds, series 4-9, dating back to 2015, payments under the corresponding state debt obligations to be temporarily suspended from September 1, 2024,” the report states.

Additionally, from September 3, 2024, the Ukrainian government is temporarily suspending payments under the state debt obligations for loans from Cargill Financial Services International, Inc., totaling USD 703.7 million as of late July 2024. From November 9, 2024, Ukraine will also suspend payments under the state guarantee obligations regarding the debt obligations under the bonds of Ukrenergo National Power Company, which were issued in 2021 for USD 825 million.

From May 31, 2025, the Cabinet of Ministers of Ukraine will temporarily suspend payments under the state derivative obligations (GDP warrants) dating back to 2015 until the relevant transaction (deed) is completed.

A reminder that, on August 9, 2024, Ukraine announced an exchange offer and consent solicitation for its existing Sovereign Eurobonds and Ukravtodor Guaranteed Eurobonds. The Ukrainian Finance Ministry expects that, upon the completion of the deal, Ukraine will reduce its debt stock by USD 8.67 billion and save USD 22.75 billion in debt payments by 2033.

On August 1, 2024, the Ukrainian Finance Ministry paid USD 200.6 million to the holders of GDP warrants.