The Strategist

Ukraine's public debt exceeds $107 billion

12/28/2022 - 09:46

Ukraine's public debt hit $107.46 billion as of the end of November. The amount of the nation's debt rose by $4.34 billion last month. According to Danil Getmantsev, the chairman of the State Tax Committee, it was 83.1% of the nation's GDP.

Mr. Getmantsev stated that the ratio was 48.9% of GDP at the end of 2021. He claims that foreign borrowing to cover the budget deficit is the primary cause of the increase in state debt.

Two-thirds of the increase specifically came from long-term, low-interest loans from the European Union, mostly in the form of €2.5 billion in macrofinancial aid. The national debt of Ukraine has increased by 9.7% ($9.5 billion) in foreign currency equivalent over the course of the first 11 months of the year.

The International Monetary Fund (IMF) projects that at the end of 2022, the public debt to GDP ratio will be 89.4%, and that it will remain there in 2023 (89.9% of GDP). The IMF estimates that $5 billion per month may be needed for Ukraine's recovery. According to the Ukrainian government, budget expenses will double above revenue in 2023. Five million people have lost their employment as a result of the fighting in Ukraine.