Ukraine's State and State-Guaranteed Debt Decreased by more than EUR 70 Million Since the Beginning of the Year

Ukraine is maintaining controlled debt dynamics even amid the full-scale war: since the start of 2026, state and state-guaranteed debt has decreased by more than EUR 70 million. At the same time, the debt portfolio structure remains predominantly concessional and long-term, while the share of guaranteed debt continues to decline.

As of May 31, 2026, the total amount of Ukraine's state and state-guaranteed debt stood at UAH 9,325.6 billion (EUR 181.3 billion or USD 210.7 billion), specifically:

• state external debt — UAH 7,075.6 billion (75.87%), or €137.6 billion ($159.8 billion);
• state domestic debt — UAH 1,988.9 billion (21.33%), or €38.7 billion ($44.9 billion);
• state-guaranteed debt — UAH 261.1 billion (2.80%), or €5.1 billion.

Compared to the figures at the end of April 2026, the volume of state and state-guaranteed debt decreased by UAH 20.0 billion and by USD 1.3 billion, while in euro terms it actually rose slightly — by EUR 119 million — due to the currency revaluation of external liabilities. Compared to the beginning of the year, debt decreased by EUR 71 million and by USD 2.7 billion, while in hryvnia terms it increased by UAH 282.9 billion — mainly due to the currency revaluation of external liabilities amid the hryvnia's depreciation since the start of the year. The decrease in debt in May, measured in hryvnia and dollar terms, was driven primarily by the redemption of domestic-market government bonds.

State-guaranteed debt continues to decline: over the first five months of 2026, it decreased from UAH 276.7 billion to UAH 261.1 billion (from EUR 5.55 billion to EUR 5.08 billion), a reduction of UAH 15.6 billion or 5.6%. Its share of total debt fell from 3.06% to 2.80%. Specifically, since the beginning of the year, guaranteed external debt decreased by UAH 16.1 billion to UAH 196.3 billion, while guaranteed domestic debt increased by UAH 0.4 billion to UAH 64.7 billion due to an increase in the volume of portfolio guarantees.

In the creditor structure of state and state-guaranteed debt, concessional loans from international financial organizations and foreign governments predominate, accounting for 66%. The largest share of such obligations belongs to the European Union — UAH 3,612.8 billion (EUR 70.24 billion), or 38.74% of total debt. The share of government securities placed on the domestic market is 21.3%, on the external market — about 8.8%, and loans from commercial banks and other financial institutions — about 3.9%.

As of the end of May 2026, the weighted-average interest rate on state debt fell to 4.43%, compared to 4.51% in January 2026 and 4.6% in May 2025. At the same time, the weighted average maturity term was 13.13 years, compared to 13.39 years in January 2026 and 12.1 years in May 2025. Thus, on an annual basis, the debt portfolio has become cheaper and longer in terms of maturity, which reduces servicing costs and lowers refinancing risks in the medium term.

In terms of the currency structure of state and state-guaranteed debt as of May 31, 2026, the largest share is in euros — 44.6% (USD 93.9 billion), followed by the US dollar — 22.7% (USD 47.9 billion), the hryvnia — 20.5% (USD 43.1 billion), and SDRs — 9.0% (USD 19.1 billion). The shares of the British pound sterling, Canadian dollar, and Japanese yen together account for 3.2%.

In May, the Ministry of Finance held 10 auctions for the placement of government bonds, raising more than UAH 12.38 billion equivalent for the state budget. The weighted-average yield on the placed bonds was 15.74% per annum in hryvnia and 3.05% per annum in US dollars. The Ministry of Finance also conducted one switch auction for UAH 4.15 billion, which helped reduce short-term budget pressure and optimize the structure of domestic debt.

Detailed information on the state of Ukraine's state and state-guaranteed debt is available by the link.