Ukraine is threatened with insolvency within weeks. Talks with a group of bond buyers failed to reach an agreement on a restructuring of international debt worth about $20 billion (about 18.72 billion euros), it was said on Monday. Time is of the essence: a two-year payment holiday expires on August 1.
This has been agreed with international buyers of government bonds because the country has been economically devastated by the Russian war of aggression. Ukrainian Finance Minister Sergei Marchenko said talks will continue. He expects the government to reach an agreement in August. The war-torn country has been exploring plans with major investors since late 2023 to restructure its foreign debt.
At the top of the priority list is access to international markets, because the Treasury Secretary knows: “Strong armies must be supported by strong economies to win wars.”
Plagued by debt even before the start of the war
According to the information, the two sides are still far apart. Bondholder representatives said the government’s proposal was “significantly above market expectations.” The proposal could “cause significant damage to Ukraine’s future investor base and to its main goal of regaining access to capital markets as quickly as possible,” the report said. Ukraine was already a heavily indebted country before the outbreak of war in 2022. According to official figures from Kiev, the national debt has doubled since the start of the war.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
