Rada allows Cabinet to suspend payments on external state debt until October 2024

The Verkhovna Rada allowed the Cabinet of Ministers to suspend payments on the external state debt until October 2024.

Member of Parliament Yaroslav Zhelezniak (Holos) announced this in his Telegram channel, Ukrainian News Agency reports.

According to him, the Verkhovna Rada adopted bill 11396 on debt restructuring in two readings.

It gives the right to the Cabinet of Ministers to suspend payments on the external state debt until October 1, 2024.

The government is also allowed to take the state-guaranteed debt of the former Ukravtodor into the "perimeter" of the state debt and carry out its restructuring (we are talking about a series of Eurobonds in 2021 for a total amount of USD 700 million + interest).

The Recovery Agency is unable to carry out such restructuring on its own, which creates a direct risk for the state budget.

As Ukrainian News Agency earlier reported, the total state (direct and guaranteed) debt of Ukraine in May compared to the previous month decreased by 0.3%, or by USD 0.53 billion, to USD 150.99 billion.