Gov’t secures delayed interest payments in debt restructuring deal with external bilateral creditors

The government has negotiated a delayed payment on interest and postponed the maturity date of its restructured debt with bilateral creditors, who rejected any principal reduction.

These terms are part of a memorandum of understanding (MoU) between the government and the creditors' official committee. While the MoU outlines the restructuring framework, final agreements are pending as each country completes its internal processes.

The government owes $5.4 billion and will now negotiate with individual countries.

The impact on Eurobond holders remains uncertain, with commercial creditors seeking equal terms. Additionally, the government must establish an escrow account for future payments.