Ukraine Secures Preliminary Debt Restructuring Amid Ongoing War

Ukraine has reached a preliminary agreement with private bondholders to restructure its $19.7 billion international debt. This marks the second restructuring in a decade, spurred by the ongoing war with Russia. The timeline reveals pivotal events from 2014 to 2023 influencing Ukraine's financial stability and debt management.

Ukraine announced on Monday that it has reached a preliminary agreement with a group of private holders of its $19.7 billion of outstanding international bonds. This marks a significant step toward an unprecedented debt restructuring deal amid the ongoing war.

This will be Ukraine's second debt restructuring in a decade, following a similar move in 2015 triggered by Russia's annexation of Crimea. Key events from 2014 to 2023 have shaped the country's financial landscape, starting with the 2014 invasion of Crimea and subsequent economic crisis due to the war in Donbass.

Key milestones include Russia's 2022 invasion leading to an economic collapse, a two-year payment freeze request in 2022, and the announcement of a memorandum of understanding for a two-year debt service suspension in September 2022. By 2023, international financial support, including a $15.6 billion loan from the IMF, aimed to stabilize Ukraine's economy. Talks with international bondholders have continued into 2024, with ongoing efforts to finalize a comprehensive restructuring plan.

(With inputs from agencies.)