Ukraine will fulfill the terms of restructuring the 2022 GDP warrants and make payments to their holders, according to the Cabinet of Ministers' resolution No 712 dated July 31, which has been published on the government portal.

"The Ministry of Finance will carry out expenditures on state derivative payments [...] within the budgetary assignments under the 3511350 Public Debt Service program", the document says without specifying the total amount.

As reported, Ukraine reached an agreement with holders of GDP warrants in August 2022 to revise the terms of the warrants.

In particular, postpone payments due for 2023 for 14 months, limit the possible amount of payments in 2025 for 2023 to 0.5% of GDP, extend the maturity of these instruments by a year (until 2039) and at the same time give Ukraine the right to fully or partially redeem them in 2024-2027. It was agreed that the payment of the GDP warrants, due on May 31, 2023 and valued at approximately $100 million, would be deferred until August 1, 2024, and would accrue interest at a rate of 7.75% per annum. Including the restructuring plans, the total GDP warrant payments this year were estimated at about $210-230 million.

Ukraine also announced its intention to hold a new restructuring of GDP warrants. A group of holders of more than 25% of these publicly traded Ukrainian obligations hired Cleary Gottlieb Steen & Hamilton LLP (CGSH) to, among other things, seek out other holders and their views on Ukraine's stated intention to restructure them again.

On July 22, the Finance Ministry of Ukraine said in a statement that it had reached an agreement with a group of holders of about 25% of these securities to restructure eurobonds in the amount of about $23 billion, adding that GDP warrants were not part of the deal. At the same time, the ministry "undertakes to ensure fair and equitable treatment of the warrant holders in any future proposal for liability management or other treatment," and intends to make a payment of up to $250 million in early August, as agreed in 2022: a fee for agreeing to a change in terms and a deferred payment for high GDP growth in 2021.

In 2023, Ukraine's GDP grew by 5.3%, which means that another payment on GDP warrants will be required in 2025.