MOSCOW—The Ukrainian government said Thursday it has reached a crucial deal with its international bondholders to lighten its public debt burden, a move that will help the country avoid default as it tries to cope with the devastating costs of war.
As part of the deal, investors who own Ukraine’s bonds will write off 20 percent of their holdings, shrinking $19 billion in sovereign debt to $15.5 billion, Prime Minister Arseniy Yatsenyuk told the government.
