Ukraine completes GPD warrant deal, eliminating 'significant' liability

LONDON, Dec 24 (Reuters) - Ukraine said on Wednesday it had completed the settlement of a deal to restructure $2.6 billion of growth-linked debt.

Concluding the transaction, announced earlier this month with more than 99% support from debtholders, is a relief for Kyiv, which said the instruments could have cost it as much as $20 billion through 2041 as its war-ravaged economy recovered.

"This restructuring eliminates a significant contingent liability from Ukraine's public finances," said the finance ministry, adding it "restores fiscal predictability, strengthens debt sustainability, and safeguards budget resources".

It also marks a key step to emerging from a debt default sparked by Russia's 2022 full-scale invasion.

Earlier this week, credit ratings agency Fitch upgraded Ukraine's long-term foreign-currency rating to "CCC" from "Restricted Default", citing normalised relations with most external commercial creditors.

The warrant traded 0.56 cents higher at 103.63 cents on the dollar.