Ukraine’s national debt increased by 54% during the first two years of the war.

From February 2022 to February 2024, Ukraine’s state debt increased by $50.4B. To reduce debt pressure on the state budget, Ukraine has worked to attract loans on preferential terms. For example, the last loan from the World Bank has a grace period until 2030, and repayment extends to 2057. The rates are also preferential (linked to the interbank market rates in the guarantor countries).

Also, most external debt has been restructured with official creditors from the G7 and the Paris Club until the end of March 2027. Commercial creditors (Eurobonds, GDP warrants) have made concessions until August 2024.

The program of cooperation with the IMF provides that by the middle of this year, further debt restructuring negotiations will be held that will seek concessions until 2027. Their successful completion will save $4.5B on debt payments, which is included in the 2024 budget.

Restructuring will significantly reduce the burden on both the budget and economy in the coming years. At the same time, debt risks remain significant in the medium and long term.