Ukraine Western creditors sign debt suspension agreement through March 2027 -finance ministry

EU-Ukraine Association Council takes place in Brussels

Ukrainian Prime Minister Denys Shmyhal and EU Foreign Policy chief Josep Borrell look on as Ukrainian Finance Minister Sergiy Marchenko shakes hands with European Commissioner for Economy Paolo Gentiloni ahead of a EU-Ukraine Association Council, in Brussels, Belgium September 5, 2022. REUTERS/Yves Herman

Source: X00380

Ukraine and a group of its Western creditors signed an agreement on Thursday to extend through March 2027 a debt payment suspension first agreed in September 2022, the Ukrainian finance ministry said.

"I am grateful to our partners from the G7 countries for understanding Ukraine's needs in the time of war," Ukraine's Minister of Finance Sergii Marchenko said in a statement.

"This voluntary debt payment suspension is part of the $122 billion international support package provided by the partners of Ukraine."

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The Group of Creditors of Ukraine said in March it provided financing assurances to support an International Monetary Fund program approval, including extending the debt moratorium until 2027 and suspending interest and repayment burdens.

The memorandum of understanding signed last year by creditors including Canada, France, Germany, Japan, the United Kingdom and the United States was initially planned through the end of 2023 - and potentially for an additional year.

This article was produced by Reuters news agency. It has not been edited by Global South World.

By Reuters