Ukraine reached a deal with international bondholders to restructure $20 billion in debt, in what Financial Times called “one of the fastest and biggest sovereign debt workouts in modern history,” done over the past four months. FT added that this deal boosts “Kyiv’s race to finance an intensifying war effort against Russia,” doing so while “pulling off an audacious counter-invasion of Russia and pushing Western backers for more military aid.” Bondholders have agreed to write off 37% of their claim, giving up claims to $8.5 billion, and reducing debt service payments by $11.5 billion. The 37% “haircut” could drop to 25% if Ukraine’s GDP surpasses IMF targets, set for 2028. Interest rates will resume at 1.75%, rising to 4.5% in 2026 and eventually to 7.75%. At the end of Kyiv’s current IMF program, in 2027, the country’s official creditors are scheduled to restructure their own debts.