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Medium-Term Public Debt Management Strategy for 2021-2024 Approved

The Cabinet of Ministers of Ukraine approved the strategic document for the debt policy: Ukraine`s Medium-Term Public Debt Management Strategy for 2021-2024.

The strategy was developed taking into account the indicators defined by the Law on the State Budget of Ukraine for 2021 and the Budget Declaration of Ukraine for 2022-2024.

The strategy includes a review of public debt, a comparative analysis of its structure and dynamics, analysis of the cost and risks of public debt, based on which the objectives of public debt management for the medium term aimed at minimizing the risks and reducing the debt burden, as well as objectives and measures to achieve them.

The strategy identifies 4 main public debt management objectives for the next 3 years:

  1. Increase the share of state debt in state currency.
  2. Extending the average maturity and ensuring an even repayment schedule of public debt.
  3. Attracting long-term concessional financing.
  4. Continued development of strong investor relations and further improvement of the state debt management policy.

Also, it contains an analysis of projected debt indicators and conclusions on debt sustainability, as well as an action plan for 2021-2024 and indicators of achieving the goals - in particular, reducing the public debt-to-GDP ratio by the end of 2024 to 47%.

For the first time, the strategy in an updated format that is closer to international practices was approved in 2019 and proved to be an effective tool to increase transparency in decision-making and improve communication with both investors and international partners. Thus, its implementation has already achieved important goals: increasing the share of public debt in national currency (from 33.4% in 2018 to 38.2% in 2020), improving the structure of public debt by maturity, and raising Ukraine's international ratings. Ukraine also received recognition at the international level: the international media GlobalMarkets awarded Ukraine the nomination "The Best Public Debt Management Office in Central and Eastern Europe".

Implementation of the Medium-Term Public Debt Management Strategy for 2021-2024 will allow Ukraine to maintain its image as a reliable partner that pursues transparent and predictable debt policy. This will have a positive impact on the terms of government borrowings and contribute to Ukraine's investment attractiveness.