Moratorium on the External Obligations of Ukraine

by Olha Povaliaieva
Wednesday, July 20, 2022
Moratorium on the External Obligations of Ukraine

The G7 decided to postpone the payment of debt obligations for Ukraine until 2024 with the possibility of extending for another year

On July 20, a group of creditor countries the G7 of Ukraine agreed on a moratorium from August 1 until the end of 2023 with the possibility of deferring payments for another year. In addition to the creditor countries, the observer countries agree with the decision: Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, the Netherlands, Norway, Spain, Sweden and Switzerland.

The decision was published on the website of the German Ministry of finance.

“Members of the Ukraine creditor group support the request for consent solicitation and urge bondholders to agree,” the statement said.

Ukraine, in turn, proposed a system for restructuring GDP warrants, and the G7 invites investors to accept this system.

"We strongly urge all other official bilateral creditors to quickly reach an agreement with Ukraine on the suspension of debt servicing."

According to the website of the Ministry, the G7 is determined to

  • Introduce a number of tools to stop the supply of Russian weapons to the war against Ukraine;
  • Exclude Russia's access to services and resources necessary for the activities of the Russian military industry;
  • Extend sanctions to hundreds more Russian individuals and businesses;
  • Raise duties on almost 600 groups of Russian goods and thus cut Russia by $2.3 billion;
  • Block Russia's access to the world market.

We remind you that the clause on Russian gas and oil will not be included in the 7th package of sanctions.

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