In May 2025, Ukraine’s total state and state-guaranteed debt increased by $1 billion, reaching $180.97 billion (₴7.515 trillion). The majority of this amount consists of external obligations, which total $134.48 billion (₴5.58 trillion) or 74.3% of the total debt. The domestic debt at the end of May amounted to $46.48 billion (₴1.93 trillion).
This is reported by Business • Media
Forecast for National Debt and Impact on the Economy
According to estimates from the International Monetary Fund, Ukraine’s total national debt may rise to 110% of gross domestic product in 2025. In comparison, last year this figure was 89.8% of GDP. Such a significant burden on the economy requires the government to take active measures to ensure the financial stability of the country.
Plans for Restructuring the Chinese Loan
The Ukrainian government is currently working on restructuring the loan received by the State Food and Grain Corporation of Ukraine from the Export-Import Bank of China back in 2012 under state guarantee. The draft amendments to the 2025 state budget include a request to the Verkhovna Rada to grant the government the right to temporarily suspend payments on this loan, which is due for repayment in 2030. This decision will allow negotiations with the Chinese bank to revise the terms of debt repayment and reach more favorable agreements for Ukraine. The suspension of payments will last until a final agreement is reached with the creditor.
“In particular, the government has asked the Verkhovna Rada to grant it the right to temporarily suspend payments on this loan, which is due for repayment in 2030. This will allow negotiations with the Chinese bank for new, more favorable debt repayment terms. The suspension will remain in effect until an agreement is reached with the creditor.”
Last year, a similar mechanism for temporarily suspending payments was already applied for negotiations regarding the restructuring of state eurobonds, obligations of “Ukrenergo,” GDP warrants, and loans from Cargill. This approach allows the government to increase flexibility in negotiations with creditors and reduce pressure on the state budget during the agreement process.