On December 24, 2025, the Ukrainian government approved a three-year national debt management plan. The country expects to spend about 1.19 trillion UAH each year on debt service and interest, more than 10% of GDP. This is the second-largest budget item after defense.
As of October 2025, Ukraine's total debt stands at $197 billion or over 8 trillion UAH. The IMF forecasts that the debt-to-GDP ratio will peak at 110.4% in 2026, then gradually decrease. Before the full-scale war, it was around 50%.
Since 2022, the debt has more than doubled. In four years of war, the ratio grew from 50% to 90% of GDP, ending 2024 at 90%.
Three-quarters of the debt is external, mainly in dollars and euros. About 2% is in foreign currency-denominated domestic bonds. This structure creates risks if the hryvnia weakens. The Ministry of Finance plans to gradually increase the share of debt in hryvnia.
In recent years, loan conditions improved. Most new loans are concessional, with low interest and long terms. The average rate fell from 7.2% to 4.9% in 2025, saving billions for the budget.
Since the start of the full-scale war, partners have provided $82 billion in support from the IMF, World Bank and EU. Some funds are grants, the rest are concessional loans. The EU launched a $50 billion program, with several tranches already received for social payments, healthcare and infrastructure recovery. World Bank support is also significant. Many loan payments will only start after 2035.
Domestic borrowing via bonds has brought in over 659 billion UAH since 2022. Ukraine continues to pay off old IMF, World Bank and EIB debts.
In 2024, Ukraine restructured over $20 billion in Eurobonds, reducing the debt by $9 billion and postponing repayments. The strategy for 2025–2027 is to get more grants, minimize debt service costs, and develop the domestic bond market.
A debt-to-GDP ratio of 110% is high but not critical for many big economies. Ukraine benefits from concessional lending and international support. However, challenges persist: the war, destruction, and high budget demands. The outlook depends on the war’s duration, post-war economic growth, and continued partner support.
