The Ministry of Finance of Ukraine has agreed with the G7 and the Paris Club to suspend payments on public debt until the end of 2023.
Yesterday, Wednesday, September 14, Minister of Finance of Ukraine Serhiy Marchenko signed a memorandum of understanding on behalf of the Ukrainian side, and representatives of the governments of Canada, France, Germany, Japan, Great Britain and the United States of America signed a memorandum of understanding on behalf of the creditors. .
The press service of the Ministry of Finance of Ukraine reported that the memorandum was signed in continuation of the intention expressed by a group of creditors on July 20 last year to suspend the payment of principal and interest on bilateral debts from August 1, 2022 until the end of 2023 with the possibility of extending the suspension for another year.
The ministry also notes that the creditor countries have expressed their support for allowing the government of Ukraine to increase spending on social needs, health or economic support, as this agreement will also allow the government of Ukraine to provide liquidity in foreign currency. The total debt covered by the memorandum is about $3.1 billion, according to the ministry.
On August 11, Finance Minister Marchenko said that freezing payments on Ukraine’s sovereign Eurobonds totaling about $20 billion would save Kyiv $6 billion over the next two years.
Source: RIA Novosti