Ukraine signs memo on debt payment deferral with G7, Paris Club creditors

Ukraine and the Group of Official Creditors from the G7 and Paris Club countries have signed a Memorandum of Understanding regarding the deferral of payments on Ukraine’s state and state-guaranteed debt, the Ministry of Finance announced on Friday.

"The document provides for a deferral of payments on state and state-guaranteed debt due from February 2026 ... until the end of February 2030, which aligns with the new International Monetary Fund program," the release stated.

Payments of the deferred amounts will be made after this period in equal semi-annual installments between 2035 and 2039, with interest capitalization included. The Memorandum extends previous agreements from 2022 and 2023 and serves as a vital element of international financial support for Ukraine, the ministry emphasized.

The document was signed by Minister of Finance Sergii Marchenko and authorized representatives of the creditor countries, including Canada, France, Germany, Japan, Italy, the Netherlands, the United Kingdom, the United States, and the Republic of Korea.

"The deferral of payments allows us to direct the released financial resources toward the state’s priority needs, particularly defense funding, the social sphere, and economic recovery," Marchenko noted.

As reported, Ukraine’s total state debt rose to a new historic high in 2025: in dollar terms, it increased by $47.27 billion, or 28.5%, to $213.33 billion. In hryvnia terms, it grew by UAH 2.06 trillion, or 29.5%, to UAH 9.04 trillion.

The total external state debt of Ukraine in 2025 increased by 47.5%, or $45.51 billion, to $160.39 billion, while the total internal debt grew by 5.6%, or UAH 104.1 billion, to UAH 1.97 trillion. Specifically, debt to the aforementioned countries increased by 5.7% last year, reaching $7.96 billion.