Zelenskyy signs law on possibility of suspending payments on external state debt until October 2024

President Volodymyr Zelenskyy has signed a law allowing the Cabinet of Ministers to suspend payments on the external state debt until October 2024.

This is evidenced by the data on the card of bill No. 11396, the Ukrainian News agency reports.

The law gives the Cabinet of Ministers the right 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 (it is 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 the 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.

The total state (direct and guaranteed) debt of Ukraine for 2023 increased by 30.4% or USD 33.87 billion to a record USD 145.32 billion.

In 2022, the total state debt increased by USD 13.39 billion, or 13.66%, to USD 111.34 billion.