Ukraine intends to postpone debt payments for 24 months
Ukraine has asked its international creditors, including Western powers and the world’s largest investment firms, to freeze its debt payments for two years so that it can focus its dwindling financial resources on repelling Russia, Reuters reports.
Facing an estimated 355 to 45% crash in GDP this year following Moscow’s invasion in February, Ukraine’s finance ministry said on July 20, 2022, it was hoping to finalize the deferral on its roughly $20 billion of debt by August 9, 2022.
The delay, which was quickly backed by both major Western governments and heavyweight funds that have lent to Kyiv, would come just in time to put off around $1.2 billion of debt payments due at the start of September 2022.
The government’s proposal, posted on its website said, “all interest payment dates for the bonds” would be deferred under the plan.
