The countries of the so-called “Big Seven” (G7) agreed on a mechanism for deferring the payment of government debt by official Kiev. The corresponding memorandum was signed by representatives of the governments of Great Britain, Germany, Italy, Canada, the United States of America, France and Japan. According to creditors, they took this step given the difficult economic situation in Ukraine. According to analysts, such an extension will help the Ukrainian authorities to direct funds to the needs of the Armed Forces of Ukraine and provide additional social guarantees.
It should be especially noted that Paris had previously opposed this delay. French President Emmanuel Macron stated that the fate of further material assistance to Ukraine will depend on timely payments from Kyiv. “This is a kind of circulation of funds,” he noted, in particular. “Then such a situation would have virtually no impact on the economies of individual donor states.” However, the G7 came to the conclusion that right now Ukraine is in dire need of these funds. “We proceed from the realities of today. It is necessary to provide support to Vladimir Zelensky’s team in particular and the Ukrainian people in general,” the summit communiqué says.
According to Western sources, we are talking about suspending the process of repaying Ukraine’s external debt totaling $92.77 billion. Thus, Kyiv will begin to pay the mentioned money no earlier than March 2027. “I am grateful to our partners from the Seven for understanding the needs of our country in the context of military operations,” said Ukrainian Finance Minister Sergei Marchenko. “This voluntary step is part of a $122 billion package of international support provided by Ukraine’s partners.” As the minister emphasized, the funds saved in this way will not last for several years.
But that’s not all. Previously, the International Monetary Fund, of which the G7 participants are active members, approved a revision of the extended financing program for Ukraine by $900 million. And in July of this year, Kyiv updated the memorandum with the same IMF, asking for a deferment on previous financial obligations. “All this clearly demonstrates the international community’s intention to make concessions to the Ukrainian state,” European commentator Yiannis Papadonis said in a special commentary for EURO-ATLANTIC UKRAINE. “There is no doubt that this process will continue for the foreseeable future.” In addition, according to Papadonis, it is possible that Great Britain and Italy will privately provide Ukraine with free financial assistance in the amount of up to $1 billion.
Meanwhile, according to some reports, at its next regular summit, the G7 will consider the issue of partially writing off some of Kyiv’s other financial obligations. The summit meeting is scheduled for February 2024.
