Ukraine’s western creditor governments to suspend debt service

PARIS — Ukraine's western creditor governments urged bondholders on Wednesday to accept Kiev's request for a two-year delay on its debt payments and said they would suspend payments owed to them.

The Ukrainian government published a resolution on Wednesday saying that it would ask international bondholders to agree to a two-year delay on its debt payments so it can focus its dwindling financial resources on repelling Russia.

"Bondholders' and warrant-holders' approval of Ukraine's proposals would represent substantive support for the government and people of Ukraine," western creditor governments said in a statement issued by the French Finance Ministry.

The group, which includes Canada, France, Germany, Japan, United Kingdom and the United States, said that they would provide a coordinated suspension of Kiev's debt servicing from Aug. 1 to the end of 2023 and potentially for an additional year.

"We also strongly encourage all other official bilateral creditors to swiftly reach an agreement with Ukraine on a debt service suspension," the group added. — Reuters