Debt Relief for Ukraine (Debt Service Suspension)
As a result of negotiations with Ukraine regarding debt relief (debt service suspension), Japan and Ukraine have recently agreed on the details of the terms of debt service suspension. In response to this, On January 16, H. E. Mr. MATSUDA Kuninori, Ambassador Extraordinary and Plenipotentiary of Japan to Ukraine, and H. E. Mr. Sergii MARCHENKO, Minister of Finance of Ukraine, signed and exchanged notes concerning of debt relief in Kyiv.
- This debt relief (debt service suspension) is intended to reduce the economic impact of Russia's war of aggression on Ukraine. It is based on a Memorandum of Understanding on September 14, 2022 between the Group of Creditors of Ukraine, including Japan (Canada, France, Germany, Japan, United Kingdom and United States) and Ukraine, in response to the request of the Government of Ukraine on July 20, 2022, and the outline is as follows.
This debt relief embodies the "deferment of debt service to Ukraine" initiative announced by Prime Minister KISHIDA at the Japan-Ukraine Summit Telephone Talk on January 6, 2023.
- (1) Covered Debt
The principal and contractual interest under loan agreements concluded before July 31, 2022, having fallen due between August 1, 2022 and December 31, 2023.
- (2) Total Covered Debt
Debt related to the Japan International Cooperation Agency (JICA): about 7.8 billion yen
- (3) Repayment
10 equal, successive and semi-annual instalments, the first one to be made on 15 June 2027
- (4) Deferred Interest
Debt related to the Japan International Cooperation Agency (JICA): 0.65%
- The Government of Japan will continue to provide support for and stand by the people of Ukraine who are facing hardship, in collaboration with the international community, including the G7 members.
Ukraine covers an area of approximately 603,700 square kilometers (roughly 1.6 times the area of Japan), and has a population of 44.14 million people (World Bank, 2020) and a gross national income (GNI) per capita of 4,120 U.S. dollars (World Bank, 2021).