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
default
s&p
standard & poor's
https://cdn1.img.sputnikglobe.com/img/07e9/06/05/1122193838_0:49:3553:2048_1920x0_80_0_0_0a0d75b0a16c97705af6fce587681172.jpg
"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
ukraine
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2025
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
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
S&P Global Declares Ukraine Defaulted on Its GDP-Linked Securities
03:35 GMT 05.06.2025 (Updated: 04:35 GMT 05.06.2025) 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.
