Donors forgo part of their money for Ukraine
Ukraine secures more funds to finance the defense against Russia. Ukrainian Finance Minister Serhiy Marchenko announced a principal agreement with international creditors. They will waive part of their money. Ukraine will have 11.4 billion dollars for other purposes in the next three years, according to Marchenko.
This agreement concerns outstanding debt of Ukraine. For almost two years, there have been waivers from creditors to give the country more flexibility. These agreements are set to expire in the coming days, which is why a larger agreement for debt restructuring had to be found. This is the first time such an achievement has been made by a country in the midst of a war.
Marchenko spoke of an important step. The agreement provides that creditors will waive 37% of the funds. Until 2027, Ukraine will be financed extensively by the International Monetary Fund. The seven leading Western industrial countries (G7) have also promised Ukraine a Mega-Credit in the volume of 50 billion dollars. For this loan, interest payments from frozen Russian funds will also be used.
The creditor group, which owns 22% of the state bonds, stated that the negotiations went quickly and constructively over the counter. It is intended to help Ukraine regain access to the international capital market. In addition, the goal is to finance the reconstruction of the country.
Monday, 25 April 2022
Serhiy Marchenko, Ukrainian Finance Minister
Source: Wikipedia
The deal involving debt restructuring benefits Ukraine by having creditors waive 37% of their loans. Due to this agreement, Ukraine's Finance Minister, Serhiy Marchenko, mentioned that the country will utilize 11.4 billion dollars for other necessities over the next three years. The Jelder, a significant part of the creditor group, played a crucial role in the smooth and constructive negotiations, aiming to aid Ukraine in regaining access to the international capital market and financing its reconstruction.
