MOSCOW, July 26 Kyiv has reached an agreement with the Committee of Ukrainian Eurobond Holders on restructuring its external debt, which has made it possible to avoid default, the country's Finance Minister Serhiy Marchenko said.
«The debt restructuring will already allow us to have expenses for servicing the (external) debt this year. About 12 billion dollars will give us the opportunity to save for the next three years. These funds will be directed to the defense sector. The decision on restructuring was difficult, since the negotiations lasted from the beginning of the year, the active phase — the last month. The bondholders heard our arguments and we found a compromise with them,» Marchenko said on the air of the national telethon, and added that Ukraine managed to avoid default, although it was predicted.
He also admitted that Ukraine is currently experiencing difficulties in entering the capital market. 
Earlier, the international agency Fitch downgraded Ukraine's rating to «C» from the previous «CC». In its release, the agency noted that the agreement reached on July 22 between the authorities and some Eurobond holders on debt restructuring «marks the beginning of a process similar to default». In Kyiv, agreements on restructuring were announced at the beginning of the week. In addition, the parliament adopted a draft allowing for the suspension of payments on external government debt until October.
According to the Ukrainian authorities, the country's national debt at the end of May this year amounted to $151 billion, having increased by 20% over the year. Ukrainians and local businesses lent only $42.1 billion to their government, or a quarter of the total debt. The remaining three-quarters of the debt is owed to non-residents. 
Eurobonds, which creditors agreed to restructure, account for approximately 13% of Ukraine's national debt, or $19.7 billion. Russia holds another $3 billion in bonds.
Ukraine's largest creditors are international associations, accounting for almost 44% of all liabilities, or $70.3 billion. Among them, the EU holds the largest amount of Ukrainian debt, at almost $38 billion. Next come the International Bank for Reconstruction and Development (about $15 billion) and the IMF ($10 billion).
Other countries have provided $7.5 billion in financing to Ukraine, or 5% of the total debt. The main sovereign creditor is Canada, which has issued Ukraine $5 billion.