Default won't happen: Ukraine successfully restructured its state debt.

Ukraine successfully completed negotiations on restructuring its state debt and thus avoided default. This was announced by Prime Minister Denys Shmyhal in his Telegram channel on August 28, 2024.

According to Shmyhal, over 95% of Ukrainian Eurobond holders supported the debt restructuring proposal developed by the Ministry of Finance in cooperation with the Eurobond holders' committee. This decision will allow Ukraine to save $11.4 billion in debt servicing over the next three years.

The Ministry of Finance clarified in its statement that the support of Eurobond holders exceeded 97%. The total savings by 2033 will amount to $22.75 billion.

Finance Minister Serhiy Marchenko noted that "almost unanimous support was achieved in less than 5 months, allowing Ukraine to reach an agreement with creditors before the end of the 2-year payment deferral period".

The Cabinet of Ministers has adopted a resolution to suspend servicing Ukraine's obligations to a number of creditors for loans and Eurobonds, as well as obligations under GDP warrants.

The saved funds are planned to be directed towards financing the security and defense sector in conditions of martial law.