Ukraine has secured preliminary agreement from government creditors and bondholders to suspend debt repayments from August 1 until at least the end of 2023, as it struggles to plug a budget deficit running at $5bn a month.
Bilateral lenders including Germany, the UK and the US on Wednesday said payments would be suspended from next month and they would “strongly encourage” private bondholders to do the same.
Simultaneously, Ukraine’s government said it would invite holders of the country’s eurobonds and other debt instruments to agree to similar terms. It said it had already received “explicit indications of support” from a group of institutional investors including BlackRock, Fidelity International, Amia Capital, Gemsstock and others.