Ukraine plans to restructure SFGCU's $1.5 bln loan issued to buy grain for China

MOSCOW. June 26 (Interfax) - Ukraine plans to restructure a loan received by the State Food and Grain Corporation of Ukraine (SFGCU) from the Export-Import Bank of China in 2012 under government guarantees, Ukrainian media outlets said, citing draft amendments to the 2025 budget published by MP Yaroslav Zheleznyak on social media.

"The government will ask the Verkhovna Rada to authorize it to suspend payments on this loan, which is due to be repaid in 2030," the document said.

The government expects this move to allow it to hold negotiations with the Chinese bank on new, more favorable terms for repaying the debt.

In 2024, the Ukrainian government took similar measures while restructuring its own Eurobonds, Ukrenergo's Eurobonds, GDP-linked warrants and Cargill loans. The holders of Ukrainian Eurobonds managed to reach an agreement, but the GDP warrant holders did not. As a result, Ukraine skipped a $665-million payment in early June 2025. The Cargill loans are yet to be restructured too.

SFGCU and the Export-Import Bank of China reached an agreement in 2012 on a $1.5-billion loan to buy grain for export under trade agreements with China. The plan was that the Chinese side would later provide a further $1.5 billion for irrigation and grain logistics development projects. However, due to SFGCU's financial insolvency, the obligation to repay the loan was transferred to the government as its guarantor.