Ukraine's public debt to exceed 100% of GDP in 2 years
The International Monetary Fund predicts an increase in Ukraine's total public debt this year to 88.1% of the country's gross domestic product (GDP), and by 2025, the public debt will exceed 100% of GDP.
Source: The Financial Monitor report presented in Marrakech by Vítor Gaspar, Director of the Fiscal Affairs Department at the IMF
Details: It is noted that the total public debt of Ukraine in 2021, before Russia’s full-scale invasion, amounted to 48.9% of the national GDP. In 2022, this figure rose to 78.5% and is expected to grow to 88.1% by the end of this year.
In addition, the Fund predicts that Ukraine's total public debt will grow to 98.6% next year and peak at 100.7% in 2025, after which it is expected to gradually decline.
Background:
- Ukraine has begun discussions with foreign bondholders on restructuring its US$20 billion debt ahead of schedule to attract new financing.
- Negotiations with bondholders were supposed to start early next year. But Ukraine is keen to agree on a restructuring as soon as possible.
- Ukraine's public and publicly guaranteed debt increased by US$1.01 billion in August 2023 and as of 31 August, it totalled US$133.93 billion.
- Earlier, Ukraine was allowed to postpone debt repayment until 2027 by the decision of the Group of Creditors, which includes all G7 countries.
Ukrainska Pravda is the place where you will find the most up-to-date information about everything related to the war in Ukraine. Follow us on Twitter, support us, or become our patron!
