Ukraine has reduced its national debt by hundreds of millions of euros
Ukraine’s public and state-guaranteed debt has decreased by more than 190 million euros since the beginning of 2026. At the same time, the structure of the debt portfolio remains stable, with a predominance of long-term and concessional borrowings.
The Ministry of Finance emphasizes that the share of guaranteed debt is gradually decreasing, and the debt portfolio itself is becoming more balanced. Despite the overall high level of liabilities, their value and maturity terms show positive dynamics.
According to the Ministry of Finance, state-guaranteed debt for the first four months of 2026 decreased from 276.7 to 259.4 billion UAH, which is equivalent to approximately 5.03 billion euros. At the same time, the external component of guaranteed debt decreased by 17.64 billion UAH, while the domestic component increased slightly—by 0.32 billion UAH—due to an increase in portfolio guarantees.
As of April 30, the total volume of Ukraine’s public and guaranteed debt stood at 9,345.5 billion UAH, or 181.2 billion euros and 212 billion dollars. The largest share of the debt structure is accounted for by the state’s external obligations—over 75%.
The core of Ukraine’s debt portfolio consists of concessional loans from international financial organizations and the governments of other countries—their share reaches 65.8%. Next come government securities placed on the domestic market (21.4%), as well as foreign bonds (8.8%).
Loans from commercial banks and other financial institutions account for less than 4% of the structure. The Ministry of Finance notes that this model allows the country to maintain its debt under relatively favorable terms.
Separately, the ministry highlights the reduction in debt servicing costs. The weighted average interest rate as of the end of April decreased to 4.45%, whereas at the beginning of the year it was 4.51%. The average maturity has also increased—to over 13 years—which reduces the short-term burden on the budget. The Ministry of Finance emphasizes that, overall, the debt portfolio has become “longer-term” and less expensive than a year ago, which is a positive sign for financial stability.
In the currency structure of the debt, the euro accounts for the largest share—nearly 45%, followed by the U.S. dollar and the hryvnia. Special drawing rights and other currencies, including pounds, yen, and Canadian dollars, are also present.
In April, the Ministry of Finance held 12 auctions to place domestic government bonds and raised over UAH 16 billion. Additionally, one switch auction was held, which allowed for the optimization of the domestic debt structure and a reduction in the short-term burden on the budget.
Despite the significant total debt, the Ministry of Finance notes a gradual reduction in its cost and an improvement in its structure. Ukraine continues to rely on long-term borrowing and concessional financing, which allows for more flexible management of public finances.
32 Years with the IMF: How the Fund’s Loans Have Shaped Ukraine and Its Economy.
A 1.1 billion debt owed by Ukrgasbank is being challenged in court.
As a reminder, investors have responded positively to the United States’ new peace plan aimed at ending the war in Ukraine. According to the latest data, Ukrainian securities, including stocks, Eurobonds, and GDP warrants, have shown growth on Europe’s leading stock exchanges. The most significant changes were observed in the WIG-Ukraine index, which recorded a 2.43% increase following the initial rumors about the plan and an additional 3.86% after its publication.
