Ukraine’s creditors, who hold roughly three quarters of the nation’s external debt, have agreed to push back repayments through 2024. This shift is being reported by Bloomberg, citing a source inside Ukraine’s Ministry of Finance. The reported figure places Ukraine’s total external debt at about 19.6 billion dollars, and the pause in payments would free up around 5.8 billion dollars for Kyiv to use in its ongoing fiscal operations.
Bloomberg notes that Ukraine faces a substantial monthly budget shortfall, estimated at around 5 billion dollars. On August 10, authorities granted postponements for loan obligations owed by Ukravtodor, the state road agency, and Ukrenergo, the national utility for the power grid. While the deferral for these agencies was approved, the government has yet to finalize a blanket postponement for Naftogaz, the state energy company, with a formal creditor vote expected by August 12.
Earlier reporting indicated a consortium of international lenders in Kyiv agreed to extend the payment schedule for foreign debt from August 1, 2022, through the end of 2023, with the possibility of a one-year extension if conditions allow. The strategy appears designed to buy Kyiv critical time to stabilize finances while domestic revenue streams and export earnings adjust to wartime economic realities.
Earlier coverage also indicated that foreign creditors of Naftogaz did not back a two-year postponement requested by the company, highlighting the delicate balance Kyiv must strike between preserving cash flow for essential services and meeting the expectations of international lenders. The decision to delay payments for a subset of debt holders reflects a pragmatic approach to debt management under unprecedented wartime pressures, aiming to reduce near-term liquidity stress without triggering broader credit-market disruption. [Bloomberg] [Reuters]