On 3 September, 2024, Ukraine announced that it successfully concluded the restructuring of approximately US$20.5 billion of Ukraine’s international bonds and the sovereign-guaranteed debt obligations of the State Agency for Restoration and Development of Infrastructure (Ukravtodor), exactly three months from the date Ukraine first entered into restricted negotiations with the representative bondholder committee. The comprehensive debt restructuring follows Ukraine’s successful two-year debt payment deferral effected in 2022.
Critical debt relief
The terms of the restructuring include an 37% upfront principal haircut, as well as significant coupon reductions and maturity extensions, which in the aggregate, reduce Ukraine’s debt stock by more than US$8.5 billion and Ukraine’s debt service payments by more than US$22 billion until 2033.
This debt relief – which is one of the highest in recent history –…
