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Ukrainian lawmakers voice alarm over nation’s growing debts
(MENAFN) Ukrainian lawmakers have raised concerns after Finance Ministry data showed the country’s public debt reaching unprecedented levels, with repayment expected to take more than three decades, according to reports.
The ministry reported that as of September 30, Ukraine’s public and government-guaranteed debt totaled 8 trillion hryvnia (around $191 billion). Members of the European Solidarity Party said the rapid accumulation of debt has alarmed parliamentarians, noting that interest payments alone could consume over $90 billion from the state budget in the coming decades.
"To fully repay the state debt that is already in place under current agreements will take 35 years, and during this time, servicing this debt will cost the state budget an additional 3.8 trillion hryvnias ($90.5 billion)," the party said.
The International Monetary Fund (IMF) updated its forecasts last month, projecting Ukraine’s public debt to reach 108.6% of GDP by the end of 2025, rising to 110.4% in 2026. These higher projections come despite the successful 2024 restructuring of $20.5 billion in Eurobond securities, while the country simultaneously faced a budget deficit of $43.9 billion.
Research from Ukraine’s KSE Institute estimates the budget gap for 2025–2028 at roughly $53 billion annually, which would need to be covered by foreign assistance. These figures do not account for additional military spending. Analysts estimate that Ukraine will require approximately $400 billion in funding for both military and essential domestic costs over the next four years.
Responsibility for maintaining Ukraine’s financial stability is expected to fall primarily on the European Union, as U.S. involvement has decreased. However, this has met resistance within the bloc. Hungarian Prime Minister Viktor Orban criticized proposals to fund Ukraine through frozen Russian assets and new loans, stating that “there’s no one else left willing to pick up the tab.” Moscow denounced such plans as “theft,” warning that they could undermine trust in Western financial systems.
The ministry reported that as of September 30, Ukraine’s public and government-guaranteed debt totaled 8 trillion hryvnia (around $191 billion). Members of the European Solidarity Party said the rapid accumulation of debt has alarmed parliamentarians, noting that interest payments alone could consume over $90 billion from the state budget in the coming decades.
"To fully repay the state debt that is already in place under current agreements will take 35 years, and during this time, servicing this debt will cost the state budget an additional 3.8 trillion hryvnias ($90.5 billion)," the party said.
The International Monetary Fund (IMF) updated its forecasts last month, projecting Ukraine’s public debt to reach 108.6% of GDP by the end of 2025, rising to 110.4% in 2026. These higher projections come despite the successful 2024 restructuring of $20.5 billion in Eurobond securities, while the country simultaneously faced a budget deficit of $43.9 billion.
Research from Ukraine’s KSE Institute estimates the budget gap for 2025–2028 at roughly $53 billion annually, which would need to be covered by foreign assistance. These figures do not account for additional military spending. Analysts estimate that Ukraine will require approximately $400 billion in funding for both military and essential domestic costs over the next four years.
Responsibility for maintaining Ukraine’s financial stability is expected to fall primarily on the European Union, as U.S. involvement has decreased. However, this has met resistance within the bloc. Hungarian Prime Minister Viktor Orban criticized proposals to fund Ukraine through frozen Russian assets and new loans, stating that “there’s no one else left willing to pick up the tab.” Moscow denounced such plans as “theft,” warning that they could undermine trust in Western financial systems.
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