Ukraine’s public debt rose to 68% of GDP

The state debt of Ukraine in the first six months of 2022 increased from $97.96 billion to $105.39 billion, as a result, it increased from 49% to 68% of GDP after receiving a $3 billion aid package from the United States, the head of the tax committee of the Verkhovna Rada of Ukraine said Daniil Getmantsev in his Telegram.

“In the first half of 2022, direct and guaranteed public debt increased from $97.96 billion to $105.39 billion. The debt burden during this time increased from 49% of GDP to 68% of GDP and, according to IMF forecasts, may increase to 86% of GDP by the end of this year,” the politician wrote.

In order to reduce the debt burden on the country’s economy and budget during the special operation, Ukraine decided to restructure part of the external public debt with payment deferral until 2024. public debt,” said Getmantsev, adding that grant financing of the budget is very important at this stage to ensure the country’s fiscal sustainability.

August 8 World Bank announced on the allocation of an additional funding package to Ukraine, consisting of a $4.5 billion grant provided by the United States. In particular, the grant will help the government of Ukraine to make social payments and pensions, and provide medical services. The organization also noted that in total the World Bank mobilized $13 billion for Ukraine, $6.3 billion of which were disbursed. On August 24, the Ministry of Finance of Ukraine confirmed the receipt of a grant from the United States in the amount of almost $3 billion to finance the budget.

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