Ukraine's Public, Publicly-Guaranteed Debt Becomes 1.5 Times Cheaper Since 2022

2025-02-06 10:11:50

(MENAFN- UkrinForm) Since the Russian full-scale invasion started, Ukraine's public and publicly-guaranteed debt has become 1.5 times cheaper, while its weighted average maturity has increased twofold to 12.26 years.

The relevant statement was made by the Ukrainian Finance Ministry , an Ukrinform correspondent reports.

“The trend of extending the maturity of public debt and reducing its cost has been observed both during the reporting period and in the past few years. Specifically, since 2022 (as of December 31, 2024), the weighted average cost of Ukraine's public and publicly-guaranteed debt has decreased by 1.5 times, from 7.79% to 5.09%, while the weighted average maturity has increased twofold, from 6.27 years to 12.26 years,” the report states.

According to the ministry, as of December 31, 2024, Ukraine's public and publicly-guaranteed debt came to UAH 6.98 trillion, or USD 166.1 billion.

Last year Ukraine's public and publicly-guaranteed debt increased by UAH 1.46 trillion (or USD 20.7 billion), mainly due to increased long-term concessional financing from international partners. The major source of funding for Ukraine's state budget was the European Union. Thus, Ukraine's debt under concessional loans from the EU increased by UAH 600.5 billion (or USD 11.1 billion).

Overall, Ukraine's public and publicly-guaranteed debt consists mainly of concessional loans from international financial organizations and foreign governments (58%), domestic market securities (28%), externally issued securities (12%), and loans from commercial banks and other institutions (2%).

The currency structure of Ukraine's public and publicly-guaranteed debt is represented by euro (33%), U.S. dollar (27%), hryvnia (25%), SDR (11%), and other currencies (4%).

According to the preliminary estimates, Ukraine's public debt amounts to 87.9% of the expected GDP in 2024.

A reminder that, during 2024, the Government of Ukraine raised about UAH 640 billion in the equivalent currency from offering domestic government debt securities through auctions.

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