Ukraine's State and State-Guaranteed Debt Becomes 1.5 Times Cheaper with Maturity Doubling Since 2022

As of December 31, 2024, Ukraine’s state and state-guaranteed debt amounted to UAH 6.98 trillion, or USD 166.1 billion. Specifically, external state and state-guaranteed debt was UAH 5.05 trillion (72.3% of the total state and state-guaranteed debt), or USD 120.1 billion, and internal state and state-guaranteed debt was UAH 1.93 trillion (27.7%), or USD 46.0 billion.

According to preliminary estimates, Ukraine’s state debt to the expected GDP in 2024 is 87.9%.

Throughout 2024, Ukraine's total state and state-guaranteed debt increased by UAH 1.46 trillion (USD 20.7 billion), mainly due to increased long-term concessional financing from international partners. The largest source of funding for the State Budget in 2024 was the financing from the European Union. During the year, Ukraine’s debt for concessional loans from the EU increased by UAH 600.5 billion (USD 11.1 billion).

The trend of extending the maturity of state debt and reducing its cost has been observed both during the reporting period and over the last few years. Specifically, as of December 31, 2024, the weighted average cost of Ukraine's state and state-guaranteed debt decreased by 1.5 times - from 7.79% to 5.09% - since 2022, while the weighted average maturity increased by 2 times—from 6.27 years to 12.26 years.

The majority of state and state-guaranteed debt—58%—consists of concessional loans from international financial institutions (IFIs) and foreign governments. Domestic market securities account for 28%, while externally issued securities make up 12%. Loans from commercial banks and other financial institutions represent the remaining 2%.

In terms of the currency structure of the state and state-guaranteed debt, the share of euros is 33%, USD – 27%, UAH – 25%, SDR – 11%, and other currencies, including GBP, CAD, and JPY - 4%.

During 2024, the Ministry of Finance held 201 auctions for the placement of domestic government bonds, raising UAH 640 billion to cover the State Budget deficit. As of December 31, 2024, the rollover rate of market domestic government bonds was 167%, with the rollover rate for domestic government bonds denominated in UAH – 200%, in USD – 115%, and in EUR – 83%.

Detailed information on the state and state-guaranteed debt of Ukraine can be found on the official website of the Ministry of Finance of Ukraine at the link. 

This year, the Ministry of Finance began publishing new statistical data in the “State Debt” section, specifically the "Register of Transactions with Contingent Liabilities". The registry provides information on transactions with contingent liabilities under agreements with the European Union, foreign governments, financial institutions, and international financial institutions, the repayment of which will be made from sources other than the State Budget of Ukraine, including revenues from frozen assets of the russian federation.