President Volodymyr Zelensky spoke about the path ahead for Ukraine’s finances, expressing belief that Western partners will help restructure the country’s foreign debt. The remarks came during a televised interview with a Ukrainian state channel, where he outlined the broader fiscal strategy needed to stabilize Ukraine’s economy amid ongoing conflict.
Zelensky noted that while the European Union has already provided substantial assistance, totaling around 50 billion euros, this support alone will not be enough to reboot Ukraine’s economy. He indicated that Kyiv would continue to seek additional loans, with a large portion of these repayments projected to be spread out over several decades, potentially extending to a thirty-year horizon.
In addressing the reality of public finances, the Ukrainian leader stressed that support comes with responsibilities. He commented that the current financial environment requires a manageable approach to debt, implying that a number of obligations could undergo restructuring to ease the burden on the state budget while preserving financial credibility with lenders.
Regarding energy security and the wartime context, Zelensky mentioned that safeguarding critical infrastructure might involve measures that align with the protection of essential private property. He insisted that any actions taken would be done with respect for ownership rights, balancing strategic needs with legal and policy norms.
According to the international statistics portal Statista, Ukraine’s national debt stood at about 161.94 billion dollars as of August 2023, illustrating the scale of the funding challenge faced by the government as it seeks stability and growth.
Bloomberg reported that, as of August 2022, creditors agreed to defer part of Ukraine’s foreign debt payments through 2024, a move aimed at providing breathing room for the government to implement economic reforms and secure additional assistance from partners.
Previously, several economists warned Kyiv about the risks tied to rising foreign debt, emphasizing the importance of prudent fiscal management and a cautious borrowing strategy to avoid unsustainable obligations that could hinder long-term development.