Ukraine Completes $20 Billion Debt Restructuring

Ukraine has successfully completed a significant debt restructuring of over $20 billion, reducing its debt by approximately $9 billion and saving $11.4 billion over the next three years. The restructuring was approved by over 97% of bondholders and is crucial for maintaining macro-financial stability amid ongoing military aggression from Russia. It aligns with conditions set by the International Monetary Fund (IMF) to ensure sustainable debt levels, and it allows for a two-year suspension of debt payments, enabling the country to focus on its defense and economic stability. The deal is one of the fastest and largest sovereign debt restructurings in history, with bondholders agreeing to a 37% write-off of their claims. Although Ukraine's ability to access international capital markets is contingent on the end of the conflict, this restructuring is seen as a vital step towards long-term economic recovery. The negotiations were facilitated by Rothschild & Co, highlighting the complexity and urgency of the situation.