In a dramatic financial rescue, Ukraine narrowly avoided defaulting on a staggering $20 billion in loans by reaching a critical agreement with private creditors in July. This deal comes amid the heavy financial strains of ongoing conflict, and it’s a story that highlights both the gravity of Ukraine’s situation and the high-stakes nature of international finance.

The Financial Drama

For the past two years, Ukraine had suspended interest payments on its international debt. This pause was set to end on August 1, 2024, and without a new deal, Ukraine was at risk of a default that could have been one of the largest in recent history. The last time Ukraine defaulted on its debt was in 2015, during the crisis following Russia's invasion of Crimea.

A Close Call

A graphic from Visual Capitalist, created by Dorothy Neufeld, shows the biggest sovereign debt defaults since 1983. Here’s a peek into the top defaults:

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