Ukraine’s Government Unveils Medium-Term Public Debt Management Plan for 2027-2029

Medium-Term Public Debt Management Framework

According to Мінфін: The Ukrainian government has approved its Medium-Term Public Debt Management Strategy for the years 2027 to 2029. This plan outlines the country’s priorities and key actions for managing public debt over the coming years. Developed in coordination with the European Commission’s Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR), the strategy aims to ensure responsible debt management, bolster macro-financial stability, and foster the growth of the domestic capital market.

Taking into account the current macroeconomic environment and security challenges, the strategy sets forth approaches to financing the state budget’s needs during this period. It is grounded in a thorough assessment of borrowing costs and associated risks, enabling Ukraine to better navigate economic uncertainties.

Primary Objectives of the Strategy

The document identifies four main goals:

• Securing long-term concessional financing and maximizing the share of grants within official external support.
• Promoting the development of the domestic capital market and enhancing its role in financing the government and economic recovery.
• Optimizing the structure of public debt by carefully balancing borrowing costs, refinancing risks, and exposure to interest rate and currency fluctuations.
• Maintaining transparent and predictable communication with investors to support a stable debt policy.

The strategy emphasizes an increased role for domestic government securities in funding the state and supporting economic rebuilding. The full text of the Medium-Term Public Debt Management Strategy is available on the official website of Ukraine’s Ministry of Finance.

Adopting this strategy represents a critical step for Ukraine amid ongoing economic volatility and reform efforts. It not only lays a foundation for prudent debt management but also highlights Ukraine’s commitment to transparency and efficiency in cooperation with international partners. Strengthening the domestic capital market could prove pivotal for the country’s post-war economic recovery, especially given the rising financial demands in the coming years.

In light of these developments, it is essential to understand the broader implications of the government's strategy, particularly regarding its emphasis on external funding sources. For a deeper insight into how the new framework aligns with Ukraine's financial goals, explore our article on the government's endorsement of the debt management strategy.