• 23/07/2024 13:07

Ukraine's national debt exceeded 5 trillion hryvnia: the Verkhovna Rada commented on whether there is a threat to the economy

 Госдолг Украины превысил 5 триллионов гривен: в ВР прокомментировали, есть ли угроза для экономики

According to Getmantsev, the growth of government debt accelerated in November.

Ukraine's public debt has reached a record high and exceeded 5 trillion hryvnia.

This was announced by the head of the Verkhovna Rada of Ukraine Committee on Finance, Tax and Customs Policy, Danilo Getmantsev.

The People's Deputy noted that, according to the Ministry of Finance, as of November 30, state and state-guaranteed debt reached UAH 5,122.5 billion , or $140.8 billion in foreign currency equivalent.

According to Getmantsev, the growth of public debt accelerated in November:

  • Over the month, government debt increased by 3.3% : in hryvnia (+164.3 billion UAH), in foreign currency equivalent (+4.5 billion dollars).

“The increase in public debt was influenced by the attraction of the next tranche of macro-financial assistance from the EU, loans from the World Bank and the placement of government bonds,” he explained.

  • Since February 28, 2022, public debt has increased by 87.6% (+2,392.4 billion UAH), in foreign currency equivalent – by 50.9% (+47.5 billion dollars).
  • In the debt structure, external government debt increased to 68.6% (before the war 60.9%), debt in foreign currency (external + foreign currency government bonds) – 71.4% (65.1%).

Getmantsev recalled that the part of the external debt has been restructured: to official creditors from the G7, the Paris Club – until the end of March 2027, to commercial creditors until August 2024, but under the IMF program an extension is also planned until 2027.

“This significantly reduces the burden on the budget: thanks to the restructuring, savings are expected on the repayment and servicing of the public debt in the amount of $4.6 billion in 2024, and a total of $14.8 billion by 2027,” says the deputy.

At the end of 2023, the ratio of public debt to GDP will be about 85% of GDP (versus 78.4% in 2022 and 48.9% in 2021).

“This is a significant level of public debt, however, previous forecasts for this year, which gave the level of public debt to GDP at about 100% of GDP (IMF – 98% of GDP) , were much worse ,” Getmantsev noted.

He assured that although the debt burden remains high, the situation is under control.

Previously, we wrote about what will happen to food prices in 2024.

Let us remind you that Daniil Getmantsev assured that there will be no financial catastrophe in January; Ukraine is receiving aid in various directions.

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