November 7, 2025
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Ukraine has not agreed on the restructuring of GDP-linked bonds, negotiations will continue

During the limited negotiations, Ukraine did not reach an agreement with the Committee of GDP-warrant owners on the restructuring of these securities, but remains determined to engage in constructive negotiations in a wider circle. This was reported by the press service of the Ministry of Finance. From October 16 to November 5, 2025, Ukraine held a series of meetings with members of the special Committee, which includes institutional investors — owners”, — write on: ua.news

During the limited negotiations, Ukraine did not reach an agreement with the Committee of GDP-warrant owners on the restructuring of these securities, but remains determined to engage in constructive negotiations in a wider circle.

This was reported by the press service of the Ministry of Finance.

From October 16 to November 5, 2025, Ukraine held a series of meetings with members of the special Committee, which includes institutional investors – owners of about 35% of Ukraine’s GDP-warrants. Due to the lack of progress, Kyiv refused further proposals in this format.

During the second round of limited negotiations, Ukraine offered holders the exchange of GDP warrants for new Eurobonds series C with an exchange ratio of 1.26. The new bonds will have a smoothed repayment schedule between 2030 and 2032 and a coupon that will start at 2.5% and gradually increase to 6% by 2030.

Among the terms of the offer is a cash component of 6 cents per $1 nominal value of GDP warrants. This was intended to encourage participation in the exchange and partially compensate for the outstanding payment on June 2, 2025.

“Ukraine remains determined to conduct constructive negotiations with all holders of GDP warrants in order to find a solution that will ensure long-term debt sustainability without creating a threat to the reconstruction and recovery of the country,” concluded the Ministry of Finance.

Instead, the Committee of Owners proposed a full exchange of GDP warrants for new Series C bonds with significantly higher economic parameters. As the Ministry of Finance emphasized, this is unacceptable for the country and does not meet the parameters agreed with the IMF and the Group of Official Creditors of Ukraine.

In April 2025, Ukraine offered holders of GDP warrants two restructuring options:

  • The first option: exchange of warrants for an additional issue of Eurobonds issued within the restructuring of 2024. Investors were to receive the same set of A and B bonds as Eurobond holders last year, at a ratio of 1.35 bonds to 1 warrant.
  • The second option: changing the terms of the issuance of GDP warrants – canceling payments for the years 2025-2028, extending the possibility of redemption/cancellation until May 2029 and receiving 36.6 cents of A and B bonds for every 100 cents of warrants.

For a successful debt restructuring, the consent of the owners of at least 75% of the total amount of GDP warrants is required.

In the summer of 2024, Ukraine successfully restructured state and state-guaranteed Eurobonds worth $20.5 billion. of the United States with the support of the holders of government bonds in a way that meets the requirements of the program with the IMF.

Recently, there were reports in the mass media that this year the public debt of Ukraine will exceed or has already exceeded 100% of GDP. UA.News decided to find out what economic experts think about this and whether such a situation threatens a catastrophe for the state.

The National Bank of Ukraine forecasts real GDP growth in 2025 by 1.9%, which is lower than the previous forecast published in July (2.1%).

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