Financial sector news

Following the third round of closed negotiations with the Special Committee of State Derivatives (GDP warrants) holders, which lasted from November 25 to 30, Ukraine officially announced the launch of an exchange offer and a request for consent to change the terms of these instruments.

The latest consultations have made it possible to significantly narrow the positions of the parties, reduce economic and structural disagreements, and make progress in agreeing on legal and technical details that are likely to receive the Committee's support. Ukraine has confirmed its readiness to continue constructive dialogue in the coming days to finalize decisions on issues that remain open.
Given the progress achieved, the government has extended the offer to all GDP warrant holders and is confident that the terms presented will allow the restructuring of these instruments to be completed by the end of the year.

Yuriy Butsa, the government's representative for public debt management, stressed that the process is now entering its final phase: investors have been given the opportunity to vote on the introduction of new terms and the exchange of warrants. According to him, the proposal was the result of lengthy consultations with the market and took into account the comments of all key parties. The successful completion of the restructuring will reduce fiscal risks and strengthen the country's debt sustainability in line with the IMF's objectives.

The government terms, published on the Irish Stock Exchange, provide for the possibility of exchanging existing GDP warrants for a combination of new Series C Eurobonds and cash payments. Details of the transaction structure are set out in the official announcement.
Finance Minister Serhiy Marchenko stressed that Russia's full-scale invasion had caused one of the worst economic shocks in Europe in decades: in 2022, Ukraine's GDP contracted by almost 30%, and ongoing attacks on energy and transport infrastructure continue to hamper growth and increase financing needs.

According to the minister, GDP warrants, created in a different economic context, have now become a significant source of fiscal risk. Without their restructuring, Ukraine would have to pay significant amounts for post-war recovery, which would divert necessary resources from defense, reconstruction, and social programs.

Marchenko thanked creditors and international partners for their constructive cooperation and expressed confidence that the restructuring would receive the necessary support and strengthen the country's economic stability.
All warrant holders, including members of the Special Committee, are invited to participate in the transaction. Voting with early participation rewards will continue until December 12. The exchange period is open until December 17. Settlements are expected on December 29.