Ukrainian parliament backs crucial debt restructuring

 
Chris Papadopoullos
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"This is a victory for Ukraine" (Source: Getty)

Ukraine’s parliament has today rubber stamped a vital debt restructuring deal, helping the country to avoid bankruptcy.

The deal was agreed by the finance ministry and a group of Ukraine's largest creditors including US-based fund Franklin Templeton at the end of August following months of tense negotiations. It will lead to a write-down of 20 percent of the principal owed, which is around $15bn (£9.7bn).
More than 300 lawmakers backed the deal, comfortably surpassing the 226 minimum that was needed.
The International Monetary Fund’s $40bn bailout package for Ukraine depended on the country saving $15bn through debt restructuring.
"This is a victory for Ukraine," parliamentary speaker Volodymyr Groisman said after today's ballot.
"Voting 'yes' means voting for economic growth, foreign investment, increasing the number of jobs and a rise in social standards," Prime Minister Arseny Yatseniuk told parliament before the vote.
The government has spend the week lobbying in favour of the deal, which should see Ukraine’s debt fall to 71 per cent of GDP by 2020 from 100 per cent.