Ukraine to Suspend International Debt Payments Amidst Economic Strain

Ukraine will temporarily halt international debt payments starting Aug. 1, likely entering a short-lived default. President Zelenskiy signed a law to suspend payments until Oct. 1, following a preliminary agreement with major bondholders to restructure nearly $20 billion in debt.

Ukraine will temporarily halt international debt payments starting Aug. 1 in a move that is expected to lead to a short-lived default, according to a government resolution approved on Wednesday.

The first coupon payment was due on Thursday. On Wednesday, President Volodymyr Zelenskiy signed a corresponding law that authorizes the suspension of payments until Oct. 1.

Earlier this month, Ukraine announced a preliminary agreement with a committee of its main bondholders to restructure approximately $20 billion in international debt.

(With inputs from agencies.)