Ukraine extends restructuring of debt to G7 countries, Paris Club until 2027

That's according to the press service of the Ministry of Finance of Ukraine, Ukrinform reports.

"Today's signing will extend until the end of March 2027, which corresponds to the end of the current IMF EFF program, the Memorandum of Understanding on official debt payments suspension on public and state-guaranteed debt with a group of official creditors of Ukraine from the G7 countries and the Paris Club, which was signed on 14 September 2022," the statement said.

The signatories were representatives of the governments of Canada, France, Germany, Japan, the United Kingdom and the United States.

"I am grateful to our partners from the G7 countries for understanding Ukraine's needs in the time of war. Today's agreement on the revision of debt obligations allows us to reduce the burden on the budget until the end of the IMF program and save foreign currency liquidity to ensure social spending. This voluntary debt payment suspension is part of the $122 billion international support package provided by the partners of Ukraine," said Minister of Finance of Ukraine Sergii Marchenko.

The group of official creditors noted the work of the Government of Ukraine in fulfilling the conditions of the IMF's Extended Fund Facility (EFF) program and implementing important reforms, including in the area of debt policy, which will form the basis for the country's economic recovery.

Also during the meeting, Marchenko stressed the importance of preserving financial resources, in particular through external private creditors of Ukraine providing the most appropriate debt treatment before the end of the debt service suspension they have granted in August 2022.

On July 20, a group of creditors of Ukraine from the G7 countries and Paris Club members announced their intention to suspend principal and interest payments on bilateral debts from August 1, 2022 until the end of 2023, with the possibility to extend the suspension by an additional year.