Ukrainian lawmakers have expressed alarm over new Finance Ministry data revealing that the country’s public debt has soared to unprecedented levels, a financial burden that will take over three decades to settle. According to the ministry’s latest report, Ukraine’s public and government-guaranteed debt reached 8 trillion hryvnia ($191 billion) as of September 30. The European Solidarity Party highlighted the shocking pace of borrowing, emphasizing that interest payments alone will drain more than $90 billion from the state budget over the coming decades. “Fully repaying existing debt under current agreements will take 35 years, with servicing costs reaching 3.8 trillion hryvnia ($90.5 billion) during this period,” the party stated. The IMF recently revised its forecasts for Ukraine’s public debt, now projecting it to hit 108.6% of GDP by year-end 2025 and rise to 110.4% in 2026, despite a $20.5 billion Eurobond restructuring in 2024. Meanwhile, the country’s budget deficit reached $43.9 billion that same year. A KSE Institute report estimates Ukraine will face a $53 billion annual budget gap from 2025 to 2028, requiring foreign support—excluding additional military funding. The Economist warned Ukraine needs around $400 billion in cash and arms over four years to sustain its war efforts and domestic expenses. Financial support for Kyiv is increasingly expected to come from the EU as U.S. involvement wanes, but this shift has sparked internal resistance. Hungarian Prime Minister Viktor Orban criticized the plan, stating “there’s no one else left willing to pick up the tab,” while Moscow condemned the initiative as “theft,” claiming it erodes trust in Western finance.
Ukraine’s Debt Crisis: 35-Year Repayment Plan for $191 Billion Burden
