Ukraine Government Agrees to Debt Repayment Deferral Requests from BlackRock, Fidelity, and Others

Volodymyr Zelensky, President of Ukraine
[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Bloomberg News reported on the 20th (local time), citing the announcement from the Ukrainian Ministry of Economy, that major institutional investors such as BlackRock and Fidelity have agreed to Ukraine's request for a two-year debt repayment deferral.

The Ukrainian Ministry of Economy issued a statement on the same day, saying, "Investors holding a large amount of Ukrainian government bonds, including BlackRock, Fidelity, Amia Capital, and Gamestock, have clearly expressed their support for the debt repayment deferral plan."

The Ukrainian government decided on the 19th to request a debt repayment deferral from private investors, and it appears that some investors responded positively shortly after the Ministry of Finance made the request on the 20th.

The Ukrainian government is reported to have requested a repayment deferral for Eurobonds worth $19.6 billion and warrants worth $3.2 billion. An official stated that the Ukrainian government could save $6 billion in funds over the next two years.

Eurobond and warrant holders must decide whether to agree by the 9th of next month.

Separately, Paris Club member countries including the United States, the United Kingdom, Germany, and France also issued a statement on the same day supporting the suspension of Ukraine's debt repayments until the end of 2023. The Paris Club members urged other creditors to also agree to suspend payments.

The Paris Club is a group of creditor countries, mainly Western advanced nations, established to assist developing countries facing economic difficulties. Founded in 1956, it currently has 22 member countries. South Korea joined the Paris Club in 2016.

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