According to the Ministry of Finance, state and state-guaranteed debt in 2023 increased to a new historical maximum - UAH 5.519 trillion or $145.32 billion. Over the year, the indicator in hryvnia increased by 35.4% (UAH 1.444 trillion), in foreign currency - by 30.4% ($33.9 billion).
The greatest impact on the growth of debt in 2023 was the receipt of macro-financial assistance (concessional loans) from the EU in the amount of EUR 18 billion, which accounted for 55% of the total growth of public debt in hryvnia equivalent and 61% in foreign currency. Public debt servicing expenses in 2023 amounted to 8.2% of expenditures of the general fund of the state budget (for comparison, 6.5% in 2022 and 12.4% in 2021).
Thus, during wartime, the structure of the state debt objectively deteriorated. One can, of course, lull oneself to sleep with the fact that a group of creditors from the G7 countries and the Paris Club agreed to suspend debt payments until 2027. But this is little consolation.
Ukrainian government not only failed to agree on a more decent deferral – at least for 10-15 years, but also on writing off at least 50% of the state debt. Moreover, they failed to agree on a reduction in the interest rate. And this entire avalanche of debts will hit the country in 2027.
