The government approved the debt strategy: 1.2 trillion UAH annually for debt servicing

Ukraine's Debt Strategy for 2026–2028

According to ХВИЛЯ: The government of Ukraine has approved the debt strategy for 2026–2028, according to which annual expenditures for servicing and repaying the state debt will amount to around 1.19 trillion UAH, which is equivalent to approximately 10% of the gross domestic product (GDP). This decision was made during a government meeting that took place on December 24.

As part of this strategy, in 2025, expenditures for debt repayments and interest are projected to be 1.05 trillion UAH. Over the following years, a gradual increase in these expenditures is observed:

• 2026 – 1.17 trillion UAH;
• 2027 – 1.26 trillion UAH;
• 2028 – 1.29 trillion UAH.

The debt burden in 2025 will amount to 11.7% of GDP.

In the summer of 2025, the weighted average interest rate on state debt decreased to 4.9%. It is worth noting that about 75% of Ukraine's obligations are in the external market, and 77% of the debt is denominated in foreign currency. The volume of net domestic financing from 2022 to the second quarter of 2025 amounted to 659 billion UAH. This new strategy reflects the government's efforts to manage the state debt and ensure the country's financial stability.

Financial Management Priorities

The approval of the debt strategy for 2026–2028 underscores the priorities of the Ukrainian government in the field of financial management amidst economic challenges. The expenditures for debt servicing, which make up a significant portion of the state budget, indicate the necessity to continue working on reducing the debt burden and ensuring financial stability. The successful implementation of this strategy could help Ukraine secure the necessary resources for socio-economic development, as well as increase investors' trust in Ukrainian securities.