Ukraine has secured from its creditors a two-year moratorium on its foreign debt, valued at $20 billion, Prime Minister Denis Schmihal announced, as the Russian offensive on the country continues.
“Investors in Ukraine’s foreign debt accepted the delay of payments until 2024. This allows Ukraine to maintain macroeconomic stability and strengthen economic sustainability,” Smikhal wrote on Twitter yesterday, Wednesday evening.
“We are grateful to the investors who accepted our proposal. Thanks to the solidarity in Ukraine shown by the community of private investors and the official public sector, we will be able to respond to the needs of the Ukrainian population,” emphasized the Minister of Finance Serhii Marchenko, according to a statement.
A group of Western creditors, including France, the United States, Germany, Japan and the United Kingdom, on July 20 agreed to a postponement of interest payments on Ukrainian debt at Kiev’s request, calling on other holders of Ukrainian debt to do the same.
Ukraine’s economy has been reeling since the war with Russia began on February 24, and GDP may shrink by 45 percent this year, according to the World Bank’s latest estimates in June.
The move to postpone Ukraine’s payment deadline may allow it to save at least three billion dollars in two years, according to calculations by the Bloomberg agency.