Ukraine's Creditors Agree on 2-year Freeze on $20Bn Overseas Debt  

 

• Ukraine's overseas creditors have backed its request for a two-year freeze on payments on almost $20Bn in international bonds, a regulatory filing showed on Wednesday, a move that will allow the war-ravaged country to avoid a messy debt default.
• With no sign of peace or a ceasefire on the horizon nearly six months after Russia's invasion began, holders of around 75% of the outstanding total agreed to Kyiv's proposal, documents showed.
• "Ukraine will save almost $6Bn on payments," said Prime Minister Denys Shmyhal in a statement. "These funds will help us maintain macro-financial stability, strengthen the sustainability of the Ukrainian economy, and improve the power of our army."
• With a monthly fiscal shortfall of $5Bn, Ukraine is heavily reliant on foreign financing from Western allies and multilateral lenders including International Monetary Fund (IMF) and the World Bank. It has so far received $12.7Bn in loans and grants, Finance Ministry data show.
• The United States said this week it would provide an additional $4.5Bn to Ukraine's government, bringing its total budgetary support since Moscow began what it calls a "special military operation" to $8.5Bn.
• Ukraine also aims to agree to a $15Bn-$2Bn IMF programme to help shore up its economy, its central bank governor said, and the government expects to receive this assistance before the year-end.

(Source: Reuters)