Ukraine failed to reach an agreement on debt restructuring and may declare default in May – FT

Ukraine has failed to reach an agreement with investors on restructuring $2.6 billion in debt and may declare default in May.

This information reported according to The Financial Times.

According to the publication, Ukraine is due to pay $600 million next month on GDP-linked securities.

“Kyiv must decide whether to declare a default on the nearly $600 million payment due at the end of May, which is tied to the country’s 2023 economic performance, if a restructuring deal cannot be reached in time,” FT writes.

Meanwhile, the Ukrainian Ministry of Finance has stated that it will “consider all available options” and will continue negotiations on the matter.

The International Monetary Fund (IMF), for its part, has warned that failure to resolve the issue represents a “serious risk” to the stability of the current $15.5 billion aid program and to last year’s restructuring deal covering more than $20 billion of Ukrainian debt.

As a reminder, according to IMF forecasts: Ukraine’s public debt is expected to exceed 100% of GDP in 2025 for the first time; by the end of 2024, public debt is projected to reach 95.6% of GDP.