Ukraine, creditors sign memorandum deferring debt payments

MOSCOW. April 20 (Interfax) - Ukraine and its Group of Seven and Paris Club creditors have signed a memorandum of understanding deferring payments on Ukraine's sovereign debt and debt guaranteed by the state, Ukrainian media reported citing the Finance Ministry.

"It provides for the suspension of payments on State Debt and State-guaranteed Debt that were due from February 2026 [...] until the end of February 2030, in line with the new program of the International Monetary Fund," the ministry said in a statement.

The suspended amounts will be repaid after this period through equal semi-annual installments over 2035-2039, with capitalization of deferred interest, it said.

The memorandum builds on previous agreements reached in 2022 and 2023 and is an important element of international financial support for Ukraine, it said.

The document was signed between Ukrainian Finance Minister Sergei Marchenko and authorized representatives of creditor countries, including Canada, France, Germany, Japan, Italy, the Netherlands, the United Kingdom, the United States, as well as the Republic of Korea, it said.

The decision "allows us to redirect freed-up financial resources to priority needs, including defense, social spending, and economic recovery," Marchenko said.

As reported, Ukraine's total sovereign debt reached a new all-time high in 2025, growing by $47.27 billion, or 28.5%, to $213.33 billion in dollar terms, or by UAH 2.062 trillion, or 29.5%, to UAH 9.043 trillion in hryvnia terms.

Ukraine's total foreign sovereign debt in 2025 increased by 47.5%, or $45.51 billion, to $160.39 billion, while its total domestic debt increased by 5.6%, or by UAH 104.1 billion, to UAH 1.967 trillion.

Ukraine's debt to the aforementioned countries increased by 5.7% to $7.96 billion last year.