Financial news
Home
Knowledge Hub
Ukraine to temporarily suspend payments on GDP warrants next year, government says
2024-08-28 08:52:10

(Reuters) -Ukraine will temporarily suspend payments on GDP warrants starting from May 31, 2025, according to government decision published on the official website late on Tuesday.


Kyiv will also temporarily suspend payments for loans from Cargill Financial Services International, Inc, starting from Sept. 3, and on government-guaranteed bonds of Ukrainian power firm Ukrenergo starting from Nov. 9, according to the document.


The GDP warrants and private debt obligations are not part of the country's sovereign restructuring deal that the government of the war-torn country is expected to finalise any time now.


With the Russian war in Ukraine now in its third year, the Kyiv government relies heavily on foreign financial aid to be able to finance its social and humanitarian payments. The bulk of Ukraine's state revenues goes to defence efforts.


The GDP warrant, an instrument linked to the country's economic output growth was created during Ukraine's 2015 debt restructuring in the wake of Russia's annexation of Crimea as a sweetener to creditors. JPMorgan calculates that Ukraine owes $2.6 billion on this instrument.


About $700 million is owed to U.S. agribusiness giant Cargill and the state grid company Ukrenergo has a government guarantee on a $830 million note.

CREATE ACCOUNT

×
1
Personal Identification
2
Address Verification
3
Employment & Financial Profile
4
Trading Experience & Risk Awareness
5
Professional Account Eligibility
6
Source of Funds & Compliance
7
Corporate Entity Information
8
Review & Submit

Personal Identification

Please enter a valid email address.
Please enter a valid phone number.
Your password must be 6-20 characters long, contain letters, numbers and special characters, and must not contain spaces or emoji.
Password not match.
This field is required
This field is required
This field is required
This field is required
This field is required
This field is required
This field is required
This field is required
This field is required

Address Verification

This field is required
This field is required
This field is required

Employment & Financial Profile

This field is required
This field is required
This field is required
This field is required
(excluding property) (USD)
This field is required

Trading Experience & Risk Awareness

This field is required
This field is required
This field is required
This field is required

Professional Account Eligibility (Optional)

Source of Funds & Compliance

This field is required

Corporate Entity Information

Complete this section only if you're opening a corporate account

Review & Submit

Please review all information carefully before submitting. You can go back to any step to make changes.
This field is required
This field is required
This field is required

Registration Successful

Your account has been created successfully!