Ukraine has announced the completion of the restructuring process for its government derivatives linked to gross domestic product (GDP-linked warrants). As a result of this operation, supported by 99.06% of investors, all existing GDP-linked warrants were canceled and exchanged for new bonds. This step enhances budget predictability, strengthens the sustainability of public debt, and helps preserve Ukraine’s financial resources amid the full-scale war with the Russian Federation.
This is reported by Finway
Restructuring of GDP-Linked Warrants: Important Consequences
According to the Ministry of Finance, without restructuring, payments on GDP-linked warrants from 2025 to 2041 could range from 6 to 20 billion US dollars. The exact amount would depend on the country’s economic growth rates.
“The agreement reached contributes to Ukraine’s debt targets within the framework of the IMF program and meets the expectations of Ukraine’s official creditor group,” noted the Ministry of Finance.
Medium-Term Debt Management Strategy
In addition to completing the restructuring, the Ukrainian government has approved a medium-term debt management strategy for 2026-2028. This document outlines three main priorities for the state’s debt policy:
- Increasing the share of grants and other non-budget financing for stable funding of the state budget.
- Reducing debt risks, which involves lowering the cost of debt, extending repayment terms, and optimizing the structure of obligations.
- Developing relationships with investors and stimulating the domestic market for government bonds to support economic recovery.
According to the new strategy, Ukraine focuses on further reducing key debt risks. The implementation of such a strategy contributes to enhancing the country’s financial stability, supports trust from international partners, and establishes clear guidelines for effective public debt management in challenging wartime conditions. Furthermore, the adoption of this strategy is part of Ukraine’s commitments to the European Union under the Ukraine Facility program.