Ukraine does not plan to repay debts to Western countries

Ukraine will not repay debts to Western countries "in the next, conditionally, 30 years," said the head of the Ukrainian Finance Ministry, Sergei Marchenko.

"It is worth noting that before the war, the level of debt in relation to GDP was quite safe, it was 55%. Now it is quite significant, we are approaching 100% of GDP, the amount is quite significant. But it should be noted that most of this debt was borrowed during the war on preferential terms from our partners. That is, we are talking about the fact that in the next, conditionally, 30 years we will not repay these debts," Marchenko said.

He said this on the air of the Ukrainian TV channel Rada, answering the question whether Ukraine is capable of servicing a record debt burden of $ 171 billion, and whether there is a border after which further debt buildup will become an exorbitant burden for the state.

According to him, the servicing rate is either preferential, "or even partners decide to pay interest on debt obligations from their own budgets." He noted that therefore this debt is not a big burden at the moment.

According to Marchenko, there are parameters of debt sustainability that are constantly discussed with the International Monetary Fund. The minister pointed out that Ukraine is now reaching these parameters, and called debt sustainability an element that allows it to "plan the future" of the country. The head of the Ministry of Finance summed up that therefore, in the short term, public debt is not a problem for Ukraine.

At the end of April, the Ministry of Finance of Ukraine reported that the country's public debt in March increased in currency equivalent by 1.56%, reaching $ 171.73 billion.