Ukraine Secures $2.6 Billion Debt Restructuring Deal

Ukraine successfully restructured $2.6 billion of growth-linked debt as creditors accepted a bonds-and-cash swap. With 99.06% approval, this move surpasses the required 75% threshold, easing potential payouts and making public finances more predictable post-war. It eliminates a fiscal risk to Ukraine's recovery.

Ukraine has successfully secured a significant $2.6 billion debt restructuring deal. Creditors overwhelmingly backed a bonds-and-cash swap, facilitating a crucial step for the nation to exit its sovereign default.

The agreement, which saw 99.06% of GDP warrant holders in favor, comfortably exceeded the necessary 75% support threshold, enabling all complex GDP warrants to be retired. Finance Minister Serhiy Marchenko emphasized that this restructuring will significantly enhance Ukraine's public financial predictability, saving billions in future payouts during its post-war recovery.

This move eliminates a problematic financial instrument that posed a serious fiscal risk to Ukraine's growth and could have threatened its recovery and reconstruction efforts.

(With inputs from agencies.)