The Cabinet of Ministers of Ukraine approved the medium-term strategy for public debt management for 2026-2028.
This is stated in the message of the Ministry of Finance, Ukrainian News Agency reports.
The document was developed by the Ministry of Finance to systematically assess the current state and dynamics of public debt, determine the goals and objectives of debt policy for the medium term, and optimize the debt structure taking into account costs and risks.
The significant increase in state budget expenditures on defense caused by the full-scale war led to a sharp increase in the budget deficit.
As a result, the volume of public debt increased significantly, and in such conditions, the main goal of public debt management was to minimize long-term risks from such growth.
The strategy defines three main goals of debt policy for 2026-2028:
- increasing the share of grants and other non-debt financing to ensure financing of the state budget.
- reducing debt risks by reducing the cost of debt, extending the maturity of debt obligations and optimizing their structure.
- supporting relations with investors and stimulating the development of the domestic government bond market as a tool for economic recovery.
According to the strategy, Ukraine continues to work on reducing key debt risks.
Refinancing risk is reduced by extending the maturity of government bonds, attracting preferential resources and conducting debt management operations.
Currency risk remains significant due to the high share of debt in foreign currency, therefore the strategic priority is to gradually increase the share of hryvnia borrowings in the long term.
Interest rate risk is currently low due to the significant share of long-term preferential debt with a fixed rate.
Contingent liabilities risks are under control: the volume of loans under state guarantees is being reduced, and the restructuring of state derivatives has just been successfully completed.
The adoption of the Strategy is an important step for Ukraine's financial stability, as it ensures predictability of debt policy, strengthens the confidence of international partners and investors, and forms clear guidelines for managing public debt in wartime conditions.
The adoption of the Strategy is also Ukraine's commitment to the EU within the framework of the Ukraine Facility: paragraph 2.6 of the Ukraine Plan defines the need to reform the public finance management system, including updating the debt strategy.
As Ukrainian News Agency earlier reported, Ukraine's total public (direct and guaranteed) debt in October increased by 1.5%, or USD 2.99 billion, compared to the previous month, to a record-breaking USD 197.19 billion.
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