Ukraine Keeps Reinforcing Debt Sustainability: Public Debt Becomes Cheaper and Longer-Term

With sustained support from international partners and a prudent government debt strategy, the Ministry of Finance continues to reduce borrowing costs and extend the maturity profile of public debt amid russia’s ongoing full-scale war against Ukraine.

As of January 31, 2026, Ukraine’s state and state-guaranteed debt amounted to UAH 9,212.6 billion (or USD 215 billion), including:

• state external debt — UAH 6,941.1 billion (75.34%) or USD 162 billion;

• state domestic debt — UAH 1,992.65 billion (21.63%) or USD 46.5 billion;\

• state-guaranteed debt — UAH 278.84 billion (3.03%) or USD 6.51 billion.

In January, the total volume of state and state-guaranteed debt increased by UAH 169.92 billion (USD 1.67 billion). The increase was primarily driven by the growth of state external debt due to the receipt of concessional financing from international partners under the ERA mechanism, as well as the revaluation of foreign currency-denominated obligations resulting from exchange rate changes at the end of the month compared to the previous period. At the same time, servicing and repayment of obligations raised under the ERA mechanism are expected to be covered by future proceeds generated from frozen Russian assets.

State-guaranteed debt increased by UAH 2.16 billion in January, specifically:

• state-guaranteed external debt increased by UAH 3.73 billion to UAH 216.12 billion;

• state-guaranteed domestic debt decreased by UAH 1.56 billion to UAH 62.73 billion.

In the creditor structure, concessional loans received from international financial organizations and foreign governments account for the largest share — 65.9%. The share of government securities placed on the domestic market amounts to 22.3%, on the external market — 8.9%, while loans from commercial banks and other financial institutions account for approximately 2.8%.

As of January 31, 2026, the weighted average interest rate on public debt declined to 4.51%, compared to 4.55% in December 2025 and 5.0% in January 2025. At the same time, the weighted average maturity stood at 13.29 years, compared to 13.37 years in December 2025 and 11.6 years in January 2025. Thus, on a year-on-year basis, the debt portfolio has become cheaper and longer in maturity, reducing debt servicing costs and lowering refinancing risks in the medium term.

In the currency structure of state and state-guaranteed debt, the largest share is denominated in euros — 45.15%, followed by the US dollar (22.45%) and the hryvnia (20.71%). The shares of Special Drawing Rights (SDRs) and other currencies (British pounds sterling, Canadian dollars, and Japanese yen) amount to 8.56% and 3.13%, respectively.

As of the end of January, the Ministry of Finance conducted 14 auctions and raised UAH 46.1 billion for the state budget, as well as one switch auction totaling UAH 17.36 billion, which helped reduce short-term budgetary pressure and optimize the structure of domestic debt.

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