Ukraine agrees 'win-win' debt restructuring deal

Finance minister hails 'collaborative' agreement that sees some of country's debt written off in exchange for higher interest on outstanding loan

Ukraine has secured a 20% writedown on $18bn (11.6bn) of its foreign debts in a deal its finance minister described as win-win for the war-torn country. Kiev's agreement with its largest creditors is an attempt to stabilise government finances after more than a year of fighting on its eastern border that has brought the country to the edge of bankruptcy.

The hedge funds holding Ukrainian debt will write off around $4bn in return for securities that will pay holders a percentage of Ukraine's economic growth from 2021. But in a move that is likely to dismay many MPs in the Kiev parliament, the government conceded that it must pay a higher interest rate on the remaining debts.

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