Ukraine’s Public Debt in October 2025 Increased Mainly Due to the EU’s ERA Loan, Which Does Not Affect Debt Sustainability

Ukraine continues to ensure responsible public debt management despite the ongoing full-scale war. With support from international partners and the Government’s prudent debt policy, the Ministry of Finance consistently reduces the cost of servicing public debt and extends its average maturity.

As of 31 October 2025, Ukraine’s public and publicly guaranteed debt amounted to UAH 8,276.2 billion (USD 197.2 billion), including:

• Public external debt – UAH 6,090.87 billion (73.6%), or USD 145.12 billion
• Public domestic debt – UAH 1,899.14 billion (22.9%), or USD 45.25 billion
• Publicly guaranteed debt – UAH 286.2 billion (3.4%), or USD 6.8 billion

In October, the total public and publicly guaranteed debt increased by UAH 252 billion (USD 2.98 billion). The main driver of this growth was the rise in external public debt, primarily due to concessional financing provided by international partners.

In particular, Ukraine received a EUR 4 billion loan from the European Union under the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative. Its repayment will be covered from sources other than the State Budget of Ukraine, including revenues generated from frozen russian assets.

Ukraine also received additional funding from the World Bank:

• USD 280 million under the SURGE project (“Supporting Ukraine’s Reconstruction through Smart Fiscal Management”)

• USD 30 million under the THRIVE project (“Transforming Health Through Innovation and Efficiency”)

Additionally, the Council of Europe Development Bank provided a EUR 100 million loan to support the needs of internally displaced persons.

At the same time, publicly guaranteed debt decreased in October by UAH 5.6 billion, specifically:

• Publicly guaranteed external debt decreased by UAH 2.76 billion, to UAH 208 billion.

• Publicly guaranteed domestic debt decreased by UAH 2.87 billion, to UAH 78.2 billion.

By type of creditors, the largest share of Ukraine’s public debt is made up of concessional loans from international financial institutions and foreign governments — 65.2%. Government securities issued on the domestic market account for 23.7%, securities issued externally — 8%, while loans from commercial banks and other financial institutions make up around 3.1%.

As of the end of October, the average weighted interest rate on public debt decreased to 4.74% (down from 4.86% in September), while the average maturity increased to 13 years (compared to 12.7 years in September 2025).

In the currency structure of public and publicly guaranteed debt, the largest share is denominated in euros — 42.7%, followed by US dollars (22.4%) and hryvnia (22.2%). The shares of Special Drawing Rights (SDRs) and other currencies (pound sterling, Canadian dollars, Japanese yen) stand at 9.4% and 3.3%, respectively.

Since the beginning of the year and as of the end of October, the Ministry of Finance conducted 137 domestic government bond auctions, raising UAH 473.1 billion, as well as one switch auction for UAH 15.5 billion, which helped reduce short-term budget pressure. The rollover ratio of market domestic government bonds stands at 112%: 112% in hryvnia, 84% in US dollars, 87% in euros.

More detailed information on Ukraine’s public and publicly guaranteed debt is available on the official website of the Ministry of Finance of Ukraine.