Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Ukraine's creditors delay decision on restructuring $2.6 billion GDP-linked debt, crucial for economic recovery and debt sustainability.
LONDON, Dec 5 (Reuters) - A key group of Ukraine's creditors said on Friday more time was needed to decide whether to back Kyiv's plan to replace $2.6 billion of its GDP-linked debt for new bonds and up to $180 million in cash.
In a statement, the Ad Hoc Group of warrantholders said "there still remain a number of key points to be resolved" in relation to the terms of the new bonds being offered by Ukraine, and that it would provide an update "in due course."
The group acknowledged it needed to provide its view ahead of the December 12 "early bird" deadline Ukraine has set for warrantholders to accept the deal in order to receive the maximum offered amount for their warrants.
Ukraine's Finance Ministry referred to a statement it gave on Thursday, saying it was "confident" the current offer represents the "best possible solution to comply with Ukraine’s long-standing commitment to restructure the Warrants to restore debt sustainability."
Ukraine wants to get rid of the instruments because their GDP-linked structure means they could cost the government billions of dollars a year in a post-war scenario of rapid reconstruction-led economic growth.
The country's Finance Minister Serhii Marchenko has previously described them as "designed for an economic reality that no longer exists" and their restructuring is also being encouraged by Ukraine's major international backers.
The Ad Hoc Group represents more than 35% of the warrants, and it has identified holders well in excess of 60%, according to previous statements.
If holders of 75% or more of the warrants support the proposal in an initial vote, those in favour will receive the new 'C series' bonds while the remainder will get an allocation of already issued B series bonds that mature in 2030 and 2034.
There will be a second chance for holders to vote on the offer at a meeting on December 22 which will have lower thresholds.
If a deal does go through it would also clear the major remaining hurdle in Ukraine's push to emerge from the default it incurred when Russia's full-scale invasion in 2022 left it unable to service its debts.
(Reporting by Marc Jones; editing by Rodrigo Campos and Edward Tobin)
GDP-linked debt is a type of financial instrument where the payments made by the borrower are linked to the economic performance of the country, specifically its Gross Domestic Product (GDP).
Debt sustainability refers to a country's ability to manage its debt levels without requiring debt relief or accumulating excessive debt that could lead to default.
A restructuring plan is a strategy implemented by a borrower to modify the terms of their debt obligations, often to improve financial stability and avoid default.
Warrants are financial instruments that give the holder the right to purchase a company's stock at a specified price before expiration, often used as a sweetener in debt offerings.
An Ad Hoc Group in finance is a temporary committee formed to address specific issues or negotiations, often related to debt restructuring or financial agreements.
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