20 Jul 2022 17:48

Group of creditor states ready to suspend debt service for Ukraine from Aug 1, 2022 to end of 2023

MOSCOW. July 20 (Interfax) - A group of creditors comprising Canada, France, Germany, Japan, the United Kingdom and the United States has granted Ukraine's request for holders of its Eurobonds to defer repayments on them for two years and review the terms and conditions of GDP warrants, strongly encouraging other bilateral creditors of Ukraine to follow suit.

"In light of this, we, as official bilateral creditors of Ukraine, intend to provide a coordinated suspension of debt service due by Ukraine from August 1st, 2022 until end-2023, with the possibility of an additional year," Ukrainian media reported citing a statement of the group of Ukraine's creditors published on the German Finance Ministry's website on Wednesday.

"Observers to the group include Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, the Netherlands, Norway, Spain, Sweden, and Switzerland," it said. The group of Ukraine's creditors strongly recommends that all other bilateral creditors promptly "reach agreement with Ukraine on a debt service suspension," it said.

The group of creditors expresses solidarity and support for Ukraine, pointing at exceptional circumstances and Ukraine's "exemplary track record of honoring debt service to date," it said.

"Bondholders' and warrant-holders' approval of Ukraine's proposals would represent substantive support for the government and people of Ukraine," it said.

"We will continue to closely coordinate and assess the situation with the support of the IMF and the World Bank," it said.