Ukraine’s national debt has exceeded $194 billion: what’s behind the numbers and how its structure has changed
31 October 2025 12:22
In September 2025, Ukraine’s public and publicly guaranteed debt increased by UAH 78.4 billion (or USD 1.63 billion). This was reported by "Komersant Ukrainian" with reference to the Ministry of Finance.
How much does Ukraine owe
As of September 30, 2025, Ukraine’s public and publicly guaranteed debt amounted to UAH 8,024.1 billion (or USD 194.2 billion), including
- external debt – UAH 6,063.2 billion (75.6%), or USD 146.8 billion THE AMOUNT OF THE DEBT IS AS FOLLOWS;
- domestic debt – UAH 1,960.9 billion (24.4%), or USD 47.5 billion. THE TOTAL AMOUNT OF THE NATIONAL DEBT IS USD 47.5 BILLION.
In September 2025, Ukraine’s public and publicly guaranteed debt increased by UAH 78.4 billion (or USD 1.63 billion).
Why did the public debt increase?
The increase was due to new external borrowings, primarily from:
- The European Union,
- The World Bank,
- governments of partner countries.
This is concessional financing that comes on favorable terms to support the budget, defense, and social sectors.
At the same time, the domestic debt even slightly decreased by UAH 0.3 billion, which indicates the stability of the domestic government bond market.
How much does debt service cost?
A positive trend is that the cost of debt servicing is decreasing.
The weighted average interest rate on debt decreased to 4.86% (from 4.95% in August).
The average term to maturity has lengthened to 12.7 years (previously 12.64).
This means that Ukraine is borrowing money at a lower cost and for a longer period, which reduces the burden on the budget in the short term.
Who lends to Ukraine
International financial organizations and foreign governments remain the main creditors, accounting for 64% of the total debt.
Structure by type of liabilities:
- 64% – concessional loans from the IMF, EU, World Bank, and G7 governments;
- 23% – government bonds issued on the domestic market;
- 8% – Eurobonds on the foreign market;
- 5% – commercial loans from banks and financial institutions.
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How the domestic debt market works
In the first nine months of 2025, the Ministry of Finance held 133 auctions of domestic government bonds, raising UAH 408.6 billion.
The level of refinancing of market domestic government bonds (i.e. the replacement of old debts with new ones) amounted to 112%:
- in hryvnia – 118%,
- in dollars – 81%,
- 87% in euros.
This shows that investors’ demand for Ukrainian bonds remains strong, even despite the war.
What currency is the debt in?
The currency structure of public debt is as follows:
- Euro – 41.5%;
- Hryvnia – 22.8%;
- US dollar – 22.7%;
- SDRs (special drawing rights) – 9.7%;
- Other currencies (pound, yen, Canadian dollar) – 3.3%.
Thus, the vast majority of the debt is in foreign currency, which makes Ukraine vulnerable to exchange rate fluctuations, but also provides access to cheaper external resources.
What it means
Ukraine’s debt continues to grow, but structurally it remains manageable and concessional.
The current strategy of the Ministry of Finance is to extend the maturity and reduce the interest rate, minimizing short-term risks.
The external support of international partners allows Ukraine to avoid default and finance critical needs in times of war.
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