Cabinet decides to suspend payments under GDP warrants

The Cabinet of Ministers decided from May 31, 2025 to temporarily stop making payments for obligations under state derivatives of 2015 (GDP warrants) until the transaction (deed) with them is carried out.

This is stated in Government Resolution No. 977 of August 27, the Ukrainian News agency reports.

By its resolution, the Cabinet of Ministers instructed the State Treasury to temporarily stop operations with the funds provided in the state budget for spending on payments under GDP warrants.

At the same time, starting from September 3, 2024, Ukraine will temporarily stop making payments on debt obligations for loans from Cargill Financial Services International.

And from November 9, payments for the state's guarantee obligations for Ukrenergo Eurobonds will be suspended.

As the Ukrainian News agency earlier reported, the Verkhovna Rada previously allowed the Cabinet of Ministers to suspend payments on the external state debt until October 2024.

After that, Ukraine announced an exchange offer and a request for consent regarding changes in the servicing of Ukraine's bonds.

In October 2015, the owners of 13 out of 14 issues of sovereign and state-guaranteed Eurobonds for a total amount of USD 14.36 billion and EUR 0.6 billion supported their restructuring.

In the course of restructuring, Ukraine issued GDP warrants for the amount of Eurobonds written off by creditors.

Under the terms of the issue, investors are entitled to a portion of real GDP growth (adjusted for inflation) exceeding 3% in 2019-2038, provided that nominal GDP (adjusted for inflation) exceeds USD 125.4 billion.

The initiator of the release was at that time the Minister of Finance of Ukraine Nataliya Yaresko.

In August 2020, Ukraine bought back on the open market 10% of its GDP warrants issued in the course of external debt restructuring with a term of validity until May 31, 2040 for a nominal amount of USD 3.2 billion.