Ukrainian President Volodymyr Zelenskyy.
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Ukraine gained approval Wednesday to push off payments to foreign bondholders until 2024.
The country is in desperate need of cash to sustain its defense against Russian aggression.
Kyiv owes $16.9 billion on foreign bonds.
Ukraine gained approval from investors to defer payments on the country’s foreign bonds to conserve cash and sustain its defense against Russia.
Bondholders, representing roughly 75% of Ukraine’s %16.9 billion in foreign bonds outstanding, gave Kyiv permission to defer both coupon and principal payments until 2024. The move is backed by allies including the International Monetary Fund and the US as a way to help Kyiv conserve cash.
“Thanks to the solidarity with Ukraine shown by the private investor community along with the official public sector, we will be able to meet the needs of the state budget of the country in war and to keep our public finances sustainable,” Sergii Marchenko, Ukraine’s finance minister, said in a statement.
Ukraine has drained its foreign currency reserves as it continues to defend itself against Russia’s invasion, and has relied heavily on funding from its central bank. The war could shrink Ukraine’s economy by one-third as the country recovers from the destruction.
The deferment follows another win for Kyiv on Tuesday, when creditors granted the country approval to re-negotiate terms on $3.2 billion worth of so-called GDP warrants, debt payments which are linked to the Ukraine’s economic growth.