International creditors extend Ukraine's debt repayments deadline until end of 2023

In efforts to express solidarity and support to war-torn country, Group of Creditors of Ukraine has announced suspension of debt repayments for Ukraine until end of 2023, with a potential one-year extension. group called on private-sector bondholders to follow suit. Notably, debt repayment by Ukraine was originally due on August 1.

Group of Creditors of Ukraine from G7 countries and Paris club members announced ir intention to suspend principal and interest payments on Ukraine's bilateral debts, Ministry of Finance of Ukraine informed in a statement. 

International creditors support Ukraine

Announcing extension of debt repayments, Group of Creditors also expressed ir support for consent appeals relating to Ukraine’s outstanding Eurobonds and GDP-linked warrant announced on Friday. It also strongly urged bondholders and warrant holders to consent to Ukraine’s requests. 

one-year suspension of debt repayments for Ukraine came in view of group's solidarity with Ukraine against Russia's unjustified, unprovoked aggression. international creditors also highlighted Ukraine’s impressive track record of honoring its debt service obligations till now. 

Thanking creditors, Minister of Finance of Ukraine Serhiy Marchenko said, "We are truly grateful to Ukraine’s international partners within G7 countries and Paris Club for this debt suspension. This provides great support for Ukraine’s state finances during most challenging time of our history."

Group of Creditors of Ukraine 

Group of Creditors of Ukraine includes Cana, France, Germany, Japan, United Kingdom and United States of America.  Observers to Group include Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, Nerlands, Norway, Spain, Sweden and Switzerland.

Ukraine sought suspension of debt repayments

Seeking a two-year payments freeze on its international bonds, Ukraine urged its creditors to grant country required time as its economy was financially hit after Russian invasion, which has been underway since February 24. Meanwhile, group has announced suspension of debt services from August 1 to end of 2023; holders of Ukraine’s dollar and euro-denominated government bonds have until August 9 to vote on proposal laid by Ukraine.