Ukraine's State and State-Guaranteed Debt as of End-June 2026: Concessional Financing Exceeds 66% of the Portfolio

Ukraine continues to maintain prudent debt dynamics despite the full-scale war. During the first half of 2026, Ukraine's state and state-guaranteed debt declined by more than USD 1.7 billion in U.S. dollar terms. At the same time, its value increased in hryvnia and euro terms, reflecting the inflow of concessional financing from international partners and exchange rate movements. The debt portfolio remains predominantly concessional, with concessional financing accounting for 66.4% of the total portfolio, while the share of state-guaranteed debt continued to decline, reaching 2.76% as of June 30, 2026.

As of June 30, 2026, Ukraine's total state and state-guaranteed debt amounted to UAH 9,490.8 billion (EUR 185.5 billion or USD 211.6 billion), including:

• State external debt – UAH 7,249.2 billion (76.38%), or EUR 141.7 billion (USD 161.6 billion);

• State domestic debt – UAH 1,979.5 billion (20.86%), or EUR 38.7 billion (USD 44.1 billion);

• State-guaranteed debt – UAH 262.1 billion (2.76%), or EUR 5.1 billion.

Compared to the end of May 2026, total state and state-guaranteed debt increased by UAH 173.9 billion, USD 1.1 billion, and EUR 4.4 billion. The increase in June was primarily driven by the receipt of concessional financing from the European Union, with Ukraine's obligations to the EU increasing by UAH 106.1 billion (USD 1.3 billion; EUR 2.4 billion), as well as new financing from the World Bank Group through the International Bank for Reconstruction and Development (IBRD) amounting to UAH 69.9 billion (USD 1.3 billion; EUR 1.4 billion).

Compared to the beginning of the year, state and state-guaranteed debt declined by USD 1.7 billion in U.S. dollar terms, while increasing by UAH 448.1 billion and EUR 4.1 billion. This divergence is explained by exchange rate effects: over the first half of the year, the U.S. dollar appreciated against both the hryvnia and the euro, while concessional financing from international partners continued to be disbursed regardless of the reporting currency.

State-guaranteed debt continued to decline during the first half of 2026, decreasing from UAH 276.7 billion (EUR 5.55 billion) to UAH 262.1 billion (EUR 5.12 billion), a reduction of UAH 14.6 billion, or 5.3%. As a result, its share in total state and state-guaranteed debt fell from 3.06% to 2.76%.

The creditor structure of Ukraine's state and state-guaranteed debt continues to be dominated by concessional loans provided by international financial institutions and foreign governments, which account for approximately 66.4% of the portfolio. The European Union remains Ukraine's largest creditor: including the loan provided under the ERA mechanism, the EU accounts for UAH 3,710.3 billion (EUR 72.5 billion), or 39.1% of total state and state-guaranteed debt. Domestic debt represents approximately 21.5% of the portfolio, Eurobonds account for 8.8%, loans from commercial banks and other financial institutions represent 1.9%, while the remaining 1.4% consists of other liabilities.

As of June 30, 2026, the currency composition of Ukraine's state and state-guaranteed debt remained dominated by the euro (44.9%), followed by the U.S. dollar (23.1%), the hryvnia (20.0%), and Special Drawing Rights (SDRs) (8.8%). The British pound sterling, Canadian dollar, and Japanese yen together accounted for approximately 3.1% of the portfolio.

As of the end of June 2026, the weighted average interest rate on state debt declined to 4.43%, compared to 4.51% at the beginning of 2026 and 4.50% at the end of June 2025. At the same time, the weighted average time to maturity stood at 13.15 years, compared to 13.39 years at the beginning of 2026 and 12.1 years a year earlier. Overall, compared to June 2025, Ukraine's debt portfolio has become both less expensive and longer-term, reducing debt servicing costs and lowering refinancing risks over the medium term.

In June, the Ministry of Finance conducted 14 domestic government bond auctions, raising more than UAH 36.1 billion equivalent for the state budget. The weighted average yield amounted to 15.05% per annum for hryvnia-denominated bonds and 3.18% per annum for euro-denominated bonds.

In addition, on June 24, the Ministry conducted another switch auction, during which investors exchanged bonds maturing in July 2026 for a new issue maturing in November 2029 with a nominal value of approximately UAH 17.2 billion. The weighted average yield of the new issue was 12.95% per annum. The transaction helped extend the average maturity of the domestic debt portfolio and smooth the government's redemption profile.

Detailed information on Ukraine's state and state-guaranteed debt is available on the official website of the Ministry of Finance of Ukraine.