© Getty Images / John Coletti
Kiev announced last week that it had reached an agreement with a group of foreign investors to restructure its $20 billion debt. Bondholders - including US financial giants BlackRock and Pimco, as well as French asset manager Amundi - granted Ukraine a two-year debt freeze in February 2022 when the conflict with Russia broke out.
The bondholders' committee, which represents the holders of 25% of the bonds, has agreed to accept losses of 37%, or $8.7 billion, on the nominal value of their debt.
The International Monetary Fund (IMF) has reportedly confirmed that the deal was compatible with the parameters of its $122 billion aid package to Kiev. Both the IMF and the country's creditors, which include the US and the Paris Club, have signed off on it, according to a statement with the terms of the accord published on the London Stock Exchange.
The restructuring of the massive debt will help Kiev save $11.4 billion over the next three years. This is crucial for both its war effort and its IMF program, Reuters wrote, describing the debt restructuring as one of the fastest and largest in history, eclipsed in scale only by those undertaken by Argentina and Greece.
Comment: One can only hope!