Ukraine launches debt restructuring, avoiding default.

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Ukraine's Finance Ministry announced on Aug.

9 the terms of the exchange of old bonds for newly issued securities, launching the process of restructuring Ukraine's external debt on Eurobonds. Kyiv reached an agreement in principle with some of its creditors in late July to restructure the country's external debt, which amounts to around £23 billion. Ukraine struck a deal with creditors at the onset of the Russian full-scale invasion to postpone the payments due to the war's pressure on the country's economy.

The deal to freeze payments of around £23 billion was set to expire on Aug.

1. Holders of Ukraine's sovereign bonds are eligible to participate in the exchange to receive new securities, the statement, listed on the London Stock Exchange, read. Ukraine is inviting holders of each series of sovereign bonds and existing bonds guaranteed by Ukravtodor, the state agency of responsible for Ukrainian roads, to exchange them for new securities.

The restructuring should be completed by Aug.

27, according to the statement. Ukraine will pay additional funds to creditors who agree to the terms by Aug.

23, the ministry said. The grace period for one of the government's Eurobond issues expires on Aug.

10, and therefore, the absence of payment on them would mean a default. The Ukrainian parliament approved a bill on July 18 granting the government the right to suspend payments on external public debt until Oct.

1. "Once completed, this restructuring will also pave the way for Ukraine's market re-entry as soon as possible when the security situation stabilizes to fund our country's swift recovery and reconstruction," Finance Minister Serhii Marchenko commented.

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