Ukraine aims to reduce state debt to 47% of GDP in 2024

Ukraine’s Cabinet of Ministers approved Mid-term Strategy
on State Debt Management for 2021-2024, the Ministry of Finance reported on
Dec. 9. The document is based on the state budget of Ukraine for 2021 and the
Budget Declaration for 2022-2024. MinFin expects the state debt to decline to
47.0% of GDP in 2024 (from expected 56.9% of GDP in 2021). 

The major goals the strategy pursues include: (1) the
increase of debt share in the national currency (from 41% in 2021 to 51% in
2024); (2) the extension of the average term of maturity (from 6.4 years in
2021 to 7 years in 2024); (3) concessional long-term financing (the increase of
share from 6.3% in 2021 to 7% in 2024); (4) development of investor relations.

Evgeniya Akhtyrko: The document settles clear numerical benchmarks for assessment. The
goals look achievable unless major economic shocks appear during the term of
forecast, or budget deficit comes out of MinFin’s control. Importantly, the
cooperation with IFIs is explicitly stated as a major point of the strategy.
This means that the goal of state debt reduction is tightly bound with
government’s commitment to go on with reforms.