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

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

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

International creditors support Ukraine

Announcing the extension of debt repayments, the Group of Creditors also expressed their support for the 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. 

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

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

Group of Creditors of Ukraine 

The Group of Creditors of Ukraine includes Canada, France, Germany, Japan, the United Kingdom and the United States of America.  Observers to the Group include Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, the Netherlands, 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 the country the required time as its economy was financially hit after the Russian invasion, which has been underway since February 24. Meanwhile, the group has announced the 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 the proposal laid by Ukraine.