The creditor group countries is ready to postpone the servicing of Ukraine’s public debt

From August 1, it is recommended to suspend debt service until the end of 2023 with the possibility of an additional year

Ukraine’s group of creditors, consisting of Canada, France, Germany, Japan, the UK and the US, support and strongly recommend that holders of Ukraine’s Eurobonds accept its offer to defer payments and redemption for two years. This was reported by Interfax-Ukraine with the reference to a statement from the German Ministry of Finance.

“We, as Ukraine’s official bilateral creditors, intend to ensure an agreed suspension of Ukraine’s debt service from August 1, 2022 until the end of 2023, with the possibility of an additional year,” the German Finance Ministry website says.

In addition, a group of creditors with Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, the Netherlands, Norway, Spain, Sweden and Switzerland as observers, urges all other official bilateral creditors to reach agreements with Ukraine on the suspension of debt servicing.

“Approval by holders of bonds and warrants of Ukraine’s proposals will mean significant support for the government and people of Ukraine,” the Ministry of Finance said in a statement.

The Creditors group also indicated that they would continue to closely coordinate and assess the situation with the support of the IMF and the World Bank.

As GMK Center reported earlier, in the mid-June international partners since the beginning of the war, Russia against Ukraine has transferred $7.4 billion to cover the state budget deficit, and the total amount of declared financial assistance to Ukraine as of mid-June is $30 billion. Up to a third of them are non-repayable grants.