Ukraine Successfully Restructures $2.6 Billion Growth-Linked Debt

Ukraine finalized a deal to restructure $2.6 billion in growth-linked debt, relieving economic pressures as the nation recovers from war impacts. The agreement, supported by over 99% of debtholders, bolsters financial predictability and follows credit rating upgrades, marking progress after the 2022 default tied to Russia's invasion.

Ukraine announced on Wednesday that it has completed a significant deal to restructure $2.6 billion of its growth-linked debt. The agreement, initially announced earlier this month, received support from over 99% of debtholders, providing much-needed economic relief for Kyiv as it navigates recovery amid ongoing challenges.

The finance ministry stated that this restructuring eliminates a major contingent liability from Ukraine's public finances. It emphasizes that the move will restore fiscal predictability, enhance debt sustainability, and protect budgetary resources, a crucial step as the country works its way out of a debt default situation caused by Russia's 2022 invasion.

In related developments, credit ratings agency Fitch has upgraded Ukraine's long-term foreign-currency rating from 'Restricted Default' to 'CCC'. The warrant reflected positive market response, trading higher at 103.63 cents on the dollar, indicating improved relations with external commercial creditors.

(With inputs from agencies.)