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The International Monetary Fund has supported Ukraine's moratorium on the payment of external debt

13 Dec, 2023
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The International Monetary Fund has supported Ukraine's moratorium on the payment of external debt

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The moratorium on the payment of Ukraine's external debt to foreign states will be in effect until 2027. The restructuring of commercial debt will be completed by mid-2024, according to the head of the IMF mission in Ukraine, Gavin Gray.

"An ambitious restructuring of external commercial debt should be carried out in the first half of 2024 to help restore debt sustainability and simultaneously create the necessary fiscal space," he said.

Gray noted that the official moratorium of creditors is expected to last until the end of the IMF program (until 2027), and the private creditors' moratorium period is expected to end in August 2024.

"As reported by the government, they plan to complete the restructuring of commercial debt by mid-2024," Gray added.

Recall that the Ukrainian authorities, in a letter of intent to the IMF leadership (Memorandum), announced plans to conduct another restructuring of external debt by mid-2024.

As stated in the document, Paris Club creditors committed to a two-stage process, including extending the moratorium on debt payments for the entire term of the IMF program (until 2027). Ukraine will seek debt restructuring from other creditors on the same terms.

In September 2022, the Minister of Finance of Ukraine, Serhiy Marchenko, signed a Memorandum of Understanding on the suspension of payments on state and state-guaranteed debt with the group of official creditors of Ukraine from the G7 countries and the Paris Club to mitigate the economic consequences of Russia's aggressive war against Ukraine.

Representatives of the governments of Canada, France, Germany, Japan, the United Kingdom, and the United States signed the Memorandum.

The Odessa Journal

The Odessa Journal

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