Ukraine's Financial Resilience: Inside the $20 Billion Debt Restructuring

Following the Russian invasion, Ukraine faced an economic crisis that led to a major debt restructuring under the guidance of Rothschild & Co. Taking cues from past restructurings, Ukrainian officials successfully negotiated with creditors to save $11.4 billion over three years, crucial for its war effort and IMF program.

Just months after Russia invaded Ukraine, Rothschild & Co provided Kyiv's debt chief with a crucial dossier on sovereign debt restructurings from the past 30 years.

Yuriy Butsa, unfamiliar with the 2015 debt rework, soon needed the expertise. By August 2022, with an economy crippled by war costs, Ukraine negotiated a $20 billion debt restructuring, saving $11.4 billion over three years—vital for their war effort and IMF program.

Despite initial negotiation breakdowns, face-to-face meetings in Paris facilitated progress. By July 18, 2022, after intensive discussions and IMF assistance, the restructuring agreement became a reality. With over 97% bondholder support, Ukraine emerged financially more stable amid ongoing conflict.

(With inputs from agencies.)