Ukraine's public debt continues to grow rapidly, reaching new heights and deepening economic dependence on external creditors. In July this year, the volume of public debt increased by 2.1%, which is equivalent to $3.20 billion. At the end of the month, the amount of public debt reached $155.4 billion.
If we look at the situation since the beginning of the year, the growth is 6.9%, and since the beginning of the war, it has been as much as 66.5% (or $62 billion).
External Debt:
External debt increased by $2.9 billion in July, mainly due to loans from the IMF. Debt to external creditors accounts for 68.7% of total public debt, having more than doubled since the start of the war.
The largest creditors:
The European Union is Ukraine's largest external creditor, with a debt of $40 billion (over 25% of the national debt). Since the beginning of the war, the debt to the EU has increased almost 8 times.
Holders of foreign bonds are in second place with a portfolio of $19.7 billion (13% of the state debt). However, under this item, the debt has decreased by 14% since the beginning of the war.
The IMF has jumped to third place – $16.49 billion (10% of the state debt). Debt to the fund has increased 1.9 times since the beginning of the war.
World Bank. The debt to it is $14.7 billion (9% of the national debt), an increase of 2.4 times since the beginning of the war.
Canada is Ukraine's largest national creditor, with a debt to it of over $5 billion (3% of the national debt).
Domestic debt. The debt to holders of domestic government bonds accounts for 26% of the total government debt. In July, this debt increased by $200 million, and since the beginning of the war, by 17% (to $40.7 billion).
According to forecasts, the ratio of public debt to GDP could reach 80% in 2024, creating serious challenges for the country's further economic growth. How long can the economy sustain such a rate of borrowing?
