Ukraine's Public Debt Surges 29.5% in a Year: How Borrowed Funds Were Allocated.

Ukraine's Debt Status as of December 31, 2025

According to TSN.ua: By the end of 2025, Ukraine's combined state and state-guaranteed debt had reached 9,042.7 billion hryvnias, equivalent to 213.3 billion US dollars. This represents a 29.5% year-on-year increase in the national currency, amounting to a rise of 2,061 trillion hryvnias. The primary driver of this growth was the securing of long-term concessional financing to meet defense and security requirements. This significant borrowing reflects the extraordinary fiscal pressures the nation faces.

Composition of the Debt Portfolio

External debt accounts for 75% of Ukraine's total debt burden. The share of commercial external debt has been reduced to less than 10%. Domestic government debt makes up approximately 22% of the portfolio, while state-guaranteed debt constitutes only 3%. In 2023, the total public debt exceeded 5.5 trillion hryvnias, equating to 84% of the country's gross domestic product.

Key financing sources that contributed to the debt increase include:

• ERA loans from the G7 totaling 37.9 billion US dollars;
• EU assistance amounting to 12.1 billion US dollars under the Ukraine Facility program.

These funds have been vital for maintaining financial stability and addressing Ukraine's urgent needs amid ongoing challenges. International support has become a cornerstone of the nation's wartime economy.

The rise of Ukraine's state and guaranteed debt to record levels is a direct consequence of the severe economic and military pressures confronting the country. Securing international financial aid, particularly from the G7 and the EU, is critically important for budgetary support and ensuring stability during wartime. Future steps in managing these debt obligations and attracting new financial resources will likely shape Ukraine's economic trajectory in the coming years.