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Ukraine’s western creditor governments to suspend debt service

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20/07/2022

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Ukraine’s western creditor governments urged bondholders on Wednesday to accept Kiev’s request for a two-year delay on its debt payments and said they would suspend payments owed to them.

The Ukrainian government published a resolution on Wednesday saying that it would ask international bondholders to agree to a two-year delay on its debt payments so it can focus its dwindling financial resources on repelling Russia. “Bondholders’ and warrant-holders’ approval of Ukraine’s proposals would represent substantive support for the government and people of Ukraine,” western creditor governments said in a statement issued by the French Finance Ministry.

The group, which includes Canada, France, Germany, Japan, United Kingdom and the United States, said that they would provided a coordinated suspension of Kiev’s debt servicing from Aug. 1 to the end of 2023 and potentially for an additional year. “We also strongly encourage all other official bilateral creditors to swiftly reach agreement with Ukraine on a debt service suspension,” the group added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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