Payset prespective
August 17, 2022

Ukraine Wins Postponement on $19 Billion of Debt

An extension on Ukraine’s debt payment deadline will help the war-torn country recover from Russia’s invasion.

Ukraine has been granted a freeze on its debt payment deadline, according to a recent report from Bloomberg Europe.

 

Ukraine Wins Debt Freeze on Foreign Bonds

 

Bloomberg reports that the deadline for Ukraine’s foreign bond payments will be extended to 2024.

 

The policy applies to$19.6 billion of Ukrainian foreign bonds. Three-quarters of investors representing that amount agreed to defer coupon and principal payments for two years.

 

This outcome could help Ukraine save $5.8 billion as it pursues reconstruction efforts in the aftermath of Russia’s invasion, which took a significant toll on its foreign currency reserves. Ukraine reportedly faces a $5 billion monthly gap in public finances and could see its economy contract by one-third this year.

 

Various allies of Ukraine including the United States and the International Monetary Fund (IMF) are said to be supporting the country’s post-war restructuring efforts.

 

Yuriy Butsa, Ukraine’s Commissioner for Public Debt Management, said that the country was “happy to hear that the majority of our investors expressed willingness to participate in the post-war reconstruction efforts of Ukraine.”

 

He adds that Ukraine hopes to “come back to the market … as a responsible and reliable issuer” as it recovers from the economic impact resulting from Russia’s invasion.

 

Ukrainian Hryvnia Has Been Devalued

 

The news comes just weeks after Ukraine intentionally devalued its hryvnia currency against the U.S. dollar by 25%.

 

On July 21, the Ukranian central bank set the hryvnia rate’s at 36.5686 to the dollar. The asset was previously set to 29.25 to the dollar at the beginning of Russia’s invasion in March.

 

It is unclear whether this week’s developments will strengthen the value of the hryvnia, either immediately or in the more distant future as the country’s post-war reconstruction plays out.

 

However, all fluctuations in value—positive or negative—provide an opportunity for those who invest in the forex market.

 

Investors who own other assets can buy the hryvnia at a discount while the asset’s value is weak. Likewise, investors who hold the hryvnia can sell the currency when its value rises. Either situation can be advantageous for foreign investors.

 

At Payset, we offer multi-currency accounts, international debit cards, and currency exchange, all of which allow you to simply benefit from differences in foreign asset prices.

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset allows you to receive payments in 34 currencies. You can send payments from your account in 38 currencies. For more details, check our payment guide.

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.

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