Ukraine fails to reach debt restructuring deal, Finance Ministry warns default is possible

The Financial Times reported the information.

Ukraine’s Ministry of Finance said it intends to consider all possible options after unsuccessful talks in Washington with the holders of the GDP warrants this week.

Last month, the IMF stated that these warrants could pose a serious risk to the current $15.5 billion financial aid program and to Kyiv’s restructuring of over $20 billion in bonds carried out last year, if the issue is not resolved. Payments on the warrants are linked to Ukraine’s annual economic growth, which could recover significantly if a ceasefire with Russia is reached, the publication notes.

“Kyiv will have to decide whether to default on about $600 million, which is due to be paid at the end of May and depends on 2023 economic indicators, if a restructuring agreement is not reached in time,” the article says.

• On February 23, Ukraine received the sixth tranche from the IMF in the amount of $1.1 billion.
• On March 31, Prime Minister Denys Shmyhal announced that about $400 million from the next tranche of the International Monetary Fund (IMF) had been received into Ukraine’s state budget.