G7 countries agree to postpone Ukraine's debt repayment until 2027

A group of Ukraine's official creditors from the G7 and the Paris Club have agreed to postpone payments on Ukraine's official debt until 2027. Source: press service of the Ukrainian Finance Ministry Details: Ukraine's Finance Minister Serhii Marchenko signed amendments to the Memorandum of Understanding on the Suspension of Official Debt Payments on 21 December.

Today's signing will extend an agreement signed on 14 September 2022 with a group of Ukraine's official creditors from the G7 and the Paris Club to the end of March 2027, which provides for the suspension of payments on public and publicly guaranteed debt.

These stipulations correspond to the completion of the current IMF's Extended Fund Facility (EFF) programme. Representatives of the governments of the United States, Canada, France, Germany, Japan, and the United Kingdom signed the agreement. "I am grateful to our partners from the G7 countries for understanding Ukraine's needs in the time of war.

Today's agreement on the revision of debt obligations allows us to reduce the burden on the budget until the end of the IMF programme and save foreign currency liquidity to ensure social spending. This voluntary debt payment suspension is part of the US£122 billion international support package provided by the partners of Ukraine," Ukraine's Finance Minister Serhii Marchenko stressed. The finance ministry emphasised that the group of official creditors noted the work of the Ukrainian government in fulfilling the conditions of the IMF's EFF programme and implementing crucial reforms, including in debt policy, underpinning the country's economic recovery.

Background: Gavin Gray, Chief of the IMF Mission to Ukraine, noted that the moratorium on Ukraine's external debt repayments will be in place until 2027 and that the restructuring will be completed by mid-2024.

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