Official 2023 GDP data for Ukraine have not yet been published.
Danylo Hetmantsev, chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, believes that "there is no real sensation here."
Recently, the international rating agency S&P downgraded Ukraine's long-term sovereign and foreign currency issuer ratings from CCC to CC, leaving a negative forecast. According to the agency's scale, the rating has been downgraded to the category "issuer default has not yet occurred, but is almost inevitable".
He explained that Ukraine is preparing to continue the restructuring of its commercial external debt, with negotiations to be completed by August 2024.
- "After the legal completion of the exchange procedure and the entry into force of the new terms and conditions of the restructured issues, we can expect a certain increase in Ukraine's sovereign and foreign currency ratings.
- This is the basic scenario supported by the EFF program with the IMF.
- Under this scenario, in December, Ukraine successfully completed a debt restructuring, postponing the servicing and repayment of its external debt to the G7 countries and the Paris Club until March 2027.
- The restructuring of debt to external commercial creditors is also provided for under the umbrella of the EFF program," Hetmantsev added.
"However, it is still too early to talk about the terms of the restructuring, as it requires the consent of at least 75% of the holders of the relevant securities. Any speculation about the debt restructuring at this stage is pure speculation," the official emphasized.
International rating agency S&P Global Ratings has updated its long-term sovereign credit rating and issuer's rating in foreign currency of Ukraine. Agency analysts downgraded to "CC" from "CCC" with a "negative" forecast.
This is stated in the message of the agency, Interfax-Ukraine reports.
Ukraine to default on its external commercial obligations - new S&P rating
"We expect that the Ukrainian government will begin formal negotiations on debt restructuring with private creditors in the short term and will complete this process by the middle of this year. We believe it is almost certain that Ukraine will default on its external commercial obligations," the statement said.
- At the same time, S&P confirmed short-term ratings of Ukraine in foreign currency "C," in national currency "CCC +/C" and according to the national scale "uaBB."
- The forecast for the rating in foreign currency is "negative," and for the rating in the national currency - "stable."
- In the absence of restructuring, the government faces debt servicing payments on Eurobonds of USD 4.5 billion in 2024 and approximately USD 3 billion on average annually in 2025-2027.
The agency in the basic scenario expects that foreign grants and concessional loans will continue to cover most of the Ukrainian government's funding needs this year and likely in the next period.
- In particular, Ukraine will be able to raise USD 38 billion this year after USD 43 billion last year to finance the budget, despite the delay in allocating USD 8 billion from the United States.
"With all that, we expect the share of long-term concessional loans from multilateral and official lenders in total public debt to continue to increase from the current high of 51%," the agency added.
S&P predicts that Ukraine will soon start formal negotiations with private creditors on debt restructuring. According to plans, the process should be completed by mid-2024.
Earlier, the deputy head of the Verkhovna Rada committee for national security, defence and intelligence, Yegor Chernev, said that the latest financial tranche of 250m dollars from the USA showed that there were problematic aspects in the support of Ukraine by the United States.
International rating agency S&P Global Ratings has downgraded Ukraine's long-term foreign currency sovereign credit rating from "CCC" to "CC," the outlook being negative, the agency reported.
The negative outlook for the long-term foreign currency rating reflects risks to Ukraine's commercial debt service given the government's debt restructuring plan,the agency's analysts explained
Be hard to assess a currency for a country that won't exist after the RUSSIAN flag goes up in KIEV !!!
International rating agency S&P Global Ratings has downgraded Ukraine's long-term foreign currency sovereign credit rating from "CCC" to "CC," the outlook being negative, the agency reported.
The negative outlook for the long-term foreign currency rating reflects risks to Ukraine's commercial debt service given the government's debt restructuring plan,the agency's analysts explained
Be hard to assess a currency for a country that won't exist after the RUSSIAN flag goes up in KIEV !!!==========================================================================
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Earlier, Standard & Poor rating agency downgraded Ukraine from a "CCC" rating to "CC"
"Ukraine is fully insolvent. However, international agencies do not risk assigning it a default rating. Although Ukraine went bankrupt long ago," he wrote on his Telegram channel.
Earlier, S&P downgraded Ukraine from a "CCC" rating to "CC." "Now the country’s long-term sovereign [debt] rating has received a highly telling stigma - ‘negative outlook,’ ‘a virtual certainty of default,’ ‘debt susceptible to non-payment,’" the former head of the Ukrainian government added.
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RUSSIA'S GDP GROWTH
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