Ukraine reached an agreement with some of its creditors in late July to restructure more than $20 billion in international bonds, allowing the country to avoid default and continue financing its defense against Russia's full-scale war.
The restructuring process involved the exchange of thirteen series of government Eurobonds and one series of state-guaranteed Eurobonds for Ukravtodor (Ukraine's state-owned road agency), worth about $20.5 billion, for eight new sereis of Eurobonds with a value of $15.2 billion.
The exchange reduced Ukraine's external debt by about $9 billion, the ministry said.
According to the ministry, the savings represent "one of the largest debt write-offs in recent sovereign debt restructurings."
The restructuring effort produced a nominal reduction of 37% from the first day of the agreement and a reduction of the net present value of the debt by around 60%, at a discount rate of 14%, the ministry said.
Ukraine's debt payments are now decreased by 93%, which will save over $11 billion over the next three years. Debt servicing and repayment costs will also drop by 77% between now and 2033, saving nearly $23 billion.
"I am grateful to our investors and official sector partners for their continued support throughout the debt restructuring process," said Yurii Butsa, government commissioner for public debt management.
"The successful outcome is a testament to the constructive cooperation and shared commitment to the long-term macro-financial stability of Ukraine. ... Thus, critical resources will be directed to where they are needed most, namely security and defense."
Ukraine struck a deal with its creditors at the onset of Russia's full-scale invasion to postpone debt payments amid the war's pressure on the country's economy.
Bondholders approved the Finance Ministry's restructuring terms in August 2024.
