Ukraine intends to offer investors a two-year deferral of payments on its Eurobonds, with negotiations scheduled until August 15. This is stated in the government resolution No. 805 of 19 July.

The Ministry of Finance must hold talks with the holders of Eurobonds.

Following the agreement, the terms and conditions of the bonds must be amended by August 15.

In particular, they want to agree with the bondholders on a postponement of the redemption dates of the Eurobonds. Namely, they want to agree upon a 24-month grace period for all of them.

They also want to agree on a delay in payment of interest income. Also for 24 months.

It is assumed that the basic and additional interest income on the bonds will continue to accrue at the rates stipulated in the terms of issue of the respective bonds.

At any time during the said deferral period, the aggregate amount of income may be paid to the bondholders:

In part, in which case payment shall be made in proportion to all the bonds; or

in full, in which case the subsequent deferral shall be deemed terminated.

The Ukrainian government, against the backdrop of an ongoing war, is studying the possibility of restructuring the debt. For example, the president believes that Ukraine should already start at least talking about the possibility of restructuring the debt.

Meanwhile, the IMF expects Ukraine to continue servicing its foreign debt.