https://sputnikglobe.com/20250605/sp-global-declares-ukraine-defaulted-on-its-gdp-linked-securities-1122193996.html
S&P Global Declares Ukraine Defaulted on Its GDP-Linked Securities
S&P Global Declares Ukraine Defaulted on Its GDP-Linked Securities
Sputnik International
Ukraine has defaulted on its GDP-linked securities after failing to make the latest payment on its government debt, according to a statement by the international ratings agency Standard and Poor’s (S&P).
2025-06-05T03:35+0000
2025-06-05T03:35+0000
2025-06-05T04:35+0000
economy
ukraine
debt
ukrainian debt
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standard & poor’s
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«Ukraine has missed the US$0.67 billion payment on its GDP-linked securities due on June 2, 2025,» the agency said on Tuesday. «We therefore lowered our issue rating on the GDP-linked securities to ‘D’ (default) from ‘CC’.»The agency noted that it downgraded the rating because it does not anticipate the Ukrainian government will make any payments during the 10-day grace period, citing a moratorium on such payments.At the same time, S&P affirmed Ukraine’s ‘SD/SD’ (selective default) foreign currency (FC) rating, according to the statement.The Ukrainian Finance Ministry said on Friday that Kiev will not repay more than $665 million in government debt due to a moratorium on payments.In late April, Ukrainian media reported that the country’s leadership had held negotiations with investors holding 30% of GDP warrants on restructuring $2.6 billion in government debt, but no agreement had been reached, and discussions were ongoing ahead of the $600 million payment due in May.A GDP warrant is a government security where payments are linked to GDP growth: if a certain figure is exceeded, holders receive additional payments. This financial instrument’s profitability is linked to a country’s economic performance. Ukraine is obliged to pay on GDP warrants of 2015 if GDP growth exceeds 3%, which happened in 2023.
https://sputnikglobe.com/20250508/ukrainian-finance-ministers-plan-to-solve-ukraines-debt–just-dont-pay-it-1122005395.html
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2025
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ukraine debt, ukraine defaulted, ukraine financial default, ukraine credit rating, ukraine economy crisis
ukraine debt, ukraine defaulted, ukraine financial default, ukraine credit rating, ukraine economy crisis
Ukraine has defaulted on its GDP-linked securities after failing to make the latest payment on its government debt, according to a statement by the international ratings agency Standard and Poor’s (S&P).
«Ukraine has missed the US$0.67 billion payment on its GDP-linked securities due on June 2, 2025,» the agency said on Tuesday. «We therefore lowered our issue rating on the GDP-linked securities to ‘D’ (default) from ‘CC’.»
The agency noted that it downgraded the rating because it does not anticipate the Ukrainian government will make any payments during the 10-day grace period, citing a moratorium on such payments.
At the same time, S&P affirmed Ukraine’s ‘SD/SD’ (selective default) foreign currency (FC) rating, according to the statement.
The Ukrainian Finance Ministry said on Friday that Kiev will not repay more than $665 million in government debt due to a moratorium on payments.
In late April, Ukrainian media reported that the country’s leadership had held negotiations with investors holding 30% of GDP warrants on restructuring $2.6 billion in government debt, but no agreement had been reached, and discussions were ongoing ahead of the $600 million payment due in May.
A GDP warrant is a government security where payments are linked to GDP growth: if a certain figure is exceeded, holders receive additional payments. This financial instrument’s profitability is linked to a country’s economic performance. Ukraine is obliged to pay on GDP warrants of 2015 if GDP growth exceeds 3%, which happened in 2023.
