Ukraine has reached an agreement with a group of official creditors from the G7 countries and the Paris Club to postpone payments on state and state-guaranteed debt until the end of February 2030. The corresponding memorandum of understanding was signed between Ukraine and representatives of the creditor countries, including Canada, France, Germany, Japan, Italy, the Netherlands, the United Kingdom, the United States, and the Republic of Korea.
This is reported by Finway
Terms of the New Memorandum
The signed document extends previous agreements reached in 2022 and 2023 and provides for the deferral of payments on state and state-guaranteed debt that were due to be made from February 2026. All obligations regarding debt servicing and repayment are postponed until February 2030. This decision aligns with Ukraine’s new cooperation program with the International Monetary Fund.
Debt Repayment and Future Payments
After the deferral period, from 2035 to 2039, the repayment of deferred amounts will be made in equal semi-annual payments. The document also provides for the capitalization of interest during this period, which will help reduce the burden on the state budget in the coming years.
“The deferral of payments creates an opportunity to direct the released financial resources to the state’s priority needs, including defense funding, social services, and economic recovery,” noted Finance Minister Serhiy Marchenko.
The signing of the memorandum allows Ukraine to focus financial resources on the country’s key needs, including defense, social payments, and economic recovery, amid ongoing external aggression and a challenging economic situation.