State and State-Guaranteed Debt of Ukraine in August: Weighted Average Interest Rate Decreased to 4.37%

Ukraine continues to maintain controlled debt dynamics amid the full-scale war. Based on the results for the first eight months of 2026, the structure of the debt portfolio remains predominantly concessional (about 64.6%), and the share of state-guaranteed debt continues to decline, reaching a minimum of 2.68% as of August 31, 2026.

As of August 31, 2026, the total amount of state and state-guaranteed debt of Ukraine amounted to UAH 9,602.89 billion (EUR 185.10 billion or USD 215.55 billion), including:

• State external debt — UAH 7,341.72 billion (76.45%), or EUR 141.51 billion (USD 164.80 billion);

• State domestic debt — UAH 2,003.37 billion (20.86%), or EUR 38.62 billion (USD 44.97 billion);

• State-guaranteed debt — UAH 257.81 billion (2.68%), or EUR 4.97 billion (USD 5.79 billion), including:

  • Guaranteed external debt — UAH 196.00 billion (2.04%), or EUR 3.78 billion (USD 4.40 billion);

  • Guaranteed domestic debt — UAH 61.81 billion (0.64%), or EUR 1.19 billion (USD 1.39 billion).

Compared to the figures at the end of July 2026, the volume of state and state-guaranteed debt increased by UAH 30.44 billion (+0.3%) and by USD 1.36 billion; at the same time, in euro equivalent, it decreased by EUR 1.59 billion. The moderate dynamics of changes in debt volumes in August are primarily driven by exchange rate fluctuations (revaluation of liabilities against the background of changes in the exchange rates of accounting currencies). The domestic government bonds portfolio for the current year grew by UAH 32.98 billion, in particular due to the exchange of bonds for UAH 15.0 billion; at the same time, the total volume of domestic debt (including guaranteed debt) decreased by UAH 9.5 billion.

Compared to the beginning of the year, the state and state-guaranteed debt increased by UAH 560.21 billion, USD 2.22 billion, and EUR 3.73 billion. In hryvnia terms, a significant part of the increase (about UAH 329 billion) was due to the revaluation of foreign-currency liabilities, while the real increase in debt was mainly driven by the attraction of long-term concessional external financing from international partners.

State-guaranteed debt continues to demonstrate a steady downward trend: over the eight months of 2026, it decreased from UAH 276.68 billion to UAH 257.81 billion (from EUR 5.55 billion to EUR 4.97 billion, or from USD 6.53 billion to USD 5.79 billion), i.e., by UAH 18.87 billion (or 6.8%). Its share of the total debt volume during this period fell from 3.06% to 2.68% (compared with 2.73% at the end of July).

In the state's creditor structure and state-guaranteed debt, long-term concessional loans raised from international financial organisations (IFIs) and foreign governments predominate, accounting for about 64.6% of the debt portfolio (UAH 6,201.8 billion). The European Union remains Ukraine's largest creditor: including the loan under the ERA facility, it accounts for UAH 3,762.0 billion (EUR 72.51 billion, or USD 84.44 billion), which is 39.2% of the total debt. The ERA loan (UAH 931.1 billion) will be repaid not from the state budget but from other sources, in particular from revenues from the russian federation's frozen assets.

The share of domestic debt (including guaranteed debt) is 21.51%, external state loan bonds (Eurobonds) — about 10.5% (UAH 1,005.8 billion), and loans from commercial banks and other foreign financial institutions — about 1.1% (UAH 105.7 billion). The rest of the portfolio consists of other liabilities. By interest rate type, 71.35% of the debt is serviced at fixed rates and 28.65% at floating rates.

In the currency structure of the state and state-guaranteed debt as of August 31, 2026, the largest share is held by the euro — 44.97%, followed by the US dollar — 22.94%, the hryvnia — 19.98%, and SDRs (Special Drawing Rights of the IMF) — 8.96%. The Canadian dollar, British pound sterling, and Japanese yen collectively account for 3.14%.

As of the end of August 2026, the weighted average interest rate on the state debt was 4.37%, compared to 4.40% in July 2026, 4.51% in January 2026, and 4.87% in August 2025. The weighted average maturity was 13.05 years, compared to 13.06 years in July 2026, 13.39 years in January 2026, and 12.50 years in August 2025. External debt, which mainly consists of concessional loans from partners, has a weighted average rate of 1.95% and a maturity of 15.29 years, while domestic debt has 13.2% and 5.31 years, respectively. Year-over-year, the debt portfolio became cheaper and longer-dated, reducing its servicing costs and lowering refinancing risks in the medium term.

In August, the Ministry of Finance held twelve auctions for the placement of domestic government bonds, attracting UAH 18.08 billion. On August 26, a switch auction took place for UAH 15.0 billion. Thanks to this active debt management operation, investors exchanged bonds with the nearest maturity date of September 30, 2026, for a new issue maturing on August 15, 2029, at 12.61% per annum, which allowed for the postponement of payments by 3 years, significantly reduced the peak debt burden in the autumn of 2026, and extended the average maturity of the domestic debt.

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