Published by Global Banking & Finance Review®
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleUkraine's GDP debt restructuring talks have failed again, delaying the restructuring of $3.2 billion in GDP warrants amid ongoing conflict.
By Marc Jones
(Reuters) -Talks between Ukraine and holders of its GDP warrants have broken down for a second time in six months, the Kyiv government said on Thursday, adding another delay to its hopes of restructuring the $3.2 billion worth of bond-like instruments.
"The parties have jointly decided to terminate the restricted discussions without reaching final agreement on the terms of a potential restructuring of the warrants," the government said in a statement.
Having failed with an original proposal back in April, this time Kyiv offered warrant holders a simpler plan to convert the warrants into a new more traditional-style bond sweetened with an additional cash payment.
It added that it intended to "continue engagement" with the debtholders, and would consider "all available options" to restructure the debt, which is a stipulation of its IMF programme.
Ukraine threw in the GDP warrants - fixed income securities which only pay out if Ukraine's economy grows strongly - to sweeten its 2015 debt restructuring following Russia's annexation of Crimea.
But their complex structure meant they were not part of last year's broader $20 billion restructuring that became necessary following Moscow's full-scale invasion in early 2022.
With still no sign of the war ending and the country now hoping to secure a new multi-billion dollar 4-year IMF programme by the start of next year, onlookers have asked whether a further debt write-down might be recommended by the Fund.
(Reporting by Marc Jones; editing by Mark Potter and Mark Heinrich)
Debt instruments are financial assets that represent a loan made by an investor to a borrower, typically in the form of bonds or notes, which pay interest over time.
Debt restructuring involves reorganizing the terms of an existing debt agreement to improve or restore liquidity, often including changes in interest rates, payment schedules, or the total amount owed.
The International Monetary Fund (IMF) is an international organization that aims to promote global economic stability and growth by providing financial assistance and advice to member countries.
GDP warrants are a type of financial instrument that pays out based on the economic growth of a country, typically linked to its GDP performance.
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