Ukraine has successfully completed the restructuring process of government derivatives linked to gross domestic product (GDP-linked warrants). As a result of the operation, supported by 99.06% of bondholders, all existing GDP-linked warrants have been annulled and replaced with new bonds. This decision enhances the predictability of the state budget, strengthens debt sustainability, and helps preserve budget resources amid the military aggression of the Russian Federation.
This is reported by Business • Media
Benefits of Restructuring GDP-linked Warrants
According to estimates from the Ministry of Finance, in the absence of restructuring, payments on GDP-linked warrants from 2025 to 2041 could reach between 6 to 20 billion US dollars, depending on the country’s economic dynamics.
“The agreement reached supports Ukraine’s debt targets within the IMF program and meets the expectations of Ukraine’s official creditor group,” noted the Ministry of Finance.
New Public Debt Management Strategy for 2026–2028
In addition to completing the restructuring, the Ukrainian government has approved a medium-term public debt management strategy for 2026–2028. The main directions of this strategy include:
- Increasing the share of grants and non-debt financing for the needs of the state budget.
- Reducing debt risks through optimizing the debt structure, lowering its cost, and extending the maturity of obligations.
- Supporting investor relations and developing the domestic market for government bonds as a tool for economic recovery.
The strategy envisions further efforts to reduce key debt risks. Its approval is regarded as a significant step towards the financial stability of the state, as the document establishes clear guidelines for managing public debt in the challenging conditions of war, strengthens the trust of international partners and investors. Implementing this strategy is also one of Ukraine’s commitments to the European Union under the Ukraine Facility.