Foreign owners of Ukrainian bonds are agreeing to form a committee of creditors on the eve of negotiations on the restructuring of payments for $20 billion. The League writes about this with a link to Reuters.
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What is known
Official group could begin negotiations ahead of the spring meeting of the International Monetary Fund, which is scheduled to begin April 17 in Washington, two agency sources said.
This will be the first attempt to formalize negotiations between private bondholders and Ukraine. The consultations, which have been ongoing since the fall of 2023, were informal.
According to sources, the Ukrainian debt management office has approached some investors, trying to unite them in a group of creditors.
Read: Ukraine's national debt has updated its anti-record: is it worth panicking
Weil, the law firm that advised creditors on the country's 2015 restructuring and suspension of payments, has also reached out to some of Ukraine's largest creditors to prepare for debt negotiations.
The creditors' committee is expected to will include from eight to 12 large asset management companies.
Growth of public debt
Since the beginning of the full-scale invasion, Ukraine’s public debt has doubled (by UAH 2.758 trillion), in currency equivalent – by 55% (by $51.6 billion). The main increase in public debt is due to the attraction of external official concessional loans from the EU, governments of other countries, and international financial organizations.
Read: Ukraine's public debt has doubled since the beginning of the war
Part of the external debt has been restructured: to official creditors from the G7, the Paris Club – until the end of March 2027, to commercial creditors (Eurobonds, GDP warrants) – until August 2024.
Under the EFF program now Negotiations are being prepared to continue the restructuring until 2027. This reduces the burden on the budget and debt risks.