Ukraine will not pay its foreign debt for two months: the President signed a law
31 July 2024 16:12
President of Ukraine Volodymyr Zelenskyy has signed a law that allows for the suspension of foreign debt payments. The relevant information is available on the draft law’s page on the website of the Verkhovna Rada of Ukraine, reports "Komersant Ukrainian"
Draft Law No. 11396 “On Amendments to Section VI “Final and Transitional Provisions” of the Budget Code of Ukraine” concerns the restructuring of the public debt. It contains two key provisions.
The first provision allows the government to include the state-guaranteed debt of the former Ukravtodor in the amount of public debt and restructure it. This refers to the 2021 Eurobonds worth $700 million plus interest.
The second provision gives the government the right to temporarily suspend payments on external public debt if necessary, but only until 1 October 2024. This may happen if no formal agreement on restructuring is reached by 10 August.
However, such an agreement has already been reached. As reported by 
, Ukraine has agreed to restructure its external debt. The agreement provides for significant changes in the structure and terms of repayment of Eurobonds. According to the agreement, the existing Eurobonds will be exchanged for a new Eurobond package, resulting in an initial nominal reduction of 37% and a reduction of the net present value of the debt by about 60%. The restructuring also significantly extends the maturity of the bonds.
