In order to express its solidarity and support for this war-torn country, the Ukraine Creditors Group announced the suspension of debt repayments to Ukraine until the end of 2023, with a possible extension. one year. The group called on private sector bondholders to follow suit. Notably, Ukraine’s debt repayment was originally scheduled to take place on August 1.
Ukraine’s Creditors’ Group of G7 countries and Paris Club members have announced their intention to suspend principal and interest payments on Ukraine’s bilateral debts, the Ukrainian Finance Ministry informed in a statement. communicated.
International creditors support Ukraine
Announcing the extension of debt repayments, the group of creditors also voiced support for consent calls on Ukraine’s outstanding Eurobonds and GDP-linked mandate announced on Friday. He also urged duty bearers and mandate holders to consent to Ukraine’s demands.
The one-year suspension of Ukraine’s debt repayments came because of the group’s solidarity with Ukraine against Russia’s unprovoked and unprovoked aggression. International creditors also pointed to Ukraine’s impressive track record in meeting its debt servicing obligations so far.
Thanking the creditors, Ukrainian Finance Minister Serhiy Marchenko said: “We are truly grateful to Ukraine’s international partners within the G7 countries and the Paris Club for this debt suspension. This provides great support to the finances of the Ukrainian state during the most difficult period in our history.”
Group of Creditors of Ukraine
Ukraine’s group of creditors includes Canada, France, Germany, Japan, the United Kingdom and the United States of America. The Group’s observers are Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, Netherlands, Norway, Spain, Sweden and Switzerland.
Ukraine calls for suspension of debt repayment
Seeking a two-year payment freeze on its international obligations, Ukraine has urged its creditors to give the country the necessary time as its economy has been financially hit after the Russian invasion, which has been ongoing since Feb. 24. In the meantime, the group has announced the suspension of debt service from August 1 to the end of 2023; Holders of Ukrainian government bonds denominated in dollars and euros have until August 9 to vote on the proposal tabled by Ukraine.