Payments on Ukraine’s national debt in 2023 will amount to UAH 658.4 billion, or $18 billion at the current exchange rate, while those on foreign debt will stand at a mere UAH 122.4 billion, or $3.3 billion, the Interfax-Ukraine news agency reported on Jan. 8, citing the Ministry of Finance.
Of the total amount of foreign debt payments, UAH 28.2 billion ($771.1 million) is to be spent on debt servicing and UAH 94.2 billion ($2.6 billion) on principal debt.
After owners of eurobonds in the summer of 2022 agreed on a postponement of payments for commercial debt, this year Ukraine must pay UAH 14.9 billion ($407.5 million), including UAH 3.1 billion ($84.7 million) in debt servicing, and UAH 4.2 billion ($114.8 million) and UAH 2 billion ($54.7 million) to repay official loans, respectively. All other payments are intended for the International Monetary Fund and other international financial organizations.
As for domestic debt, these are domestic government bonds, and the share of interest payments for them is higher and amounts to UAH 203.2 billion ($5.5 billion), while it will be necessary to allocate UAH 332.8 billion($9.1 billion) for their repayment.
According to the Finance Ministry, the peaks of public debt payments fall on March – UAH 72.8 billion ($2 billion), May and June – UAH 102.6 billion ($2.8 billion) and UAH 89.9 billion ($2.4 billion), and November – UAH 84.1billion ($2.3 billion).
If to take only the foreign debt, Ukraine needs to pay the most in September – UAH 32.02 billion ($875.6 million), as well as UAH 18.8 billion ($514.1 million) in December, UAH 14 billion ($382.8 million) in March, and UAH 10 billion ($273.4 million) and less in other months.
According to the currently valid agreements, payments for the national debt for 2024 are estimated at UAH 649.9 billion, or $17.8 billion, including $10 billion for the foreign debt, more than half of which will be paid in Q3, when the moratorium on eurobonds ends.
In 2025, payments on the national debt will grow to UAH 508.2 billion ($13.9 billion) (of which UAH 306.4 billion ($8.3 billion) are foreign debt payments), after which they will decrease annually.
The total national debt of Ukraine increased in dollar terms by 9.7%, or by$9.51 billion, to $97.69 billion in 11 months, while in the hryvnia equivalent – due to devaluation – grew by 47.1%, or by UAH 1.258 trillion, to UAH3.93 trillion.
The total foreign debt of Ukraine increased by 21.2%, or $12.1 billion, to $69.3 billion in 11 months, while the total domestic debt grew by 25.5%, or UAH 283.7 billion, to UAH 1.395 trillion.