Financial sector news

The Cabinet of Ministers approved a public debt management plan that provides for attracting grants, reducing risks, and developing the government bond market. The document defines the priorities of debt policy in wartime and ways to minimize financial risks for the state.

The strategy defines three main objectives of debt policy for 2026-2028:

Increasing the share of grants and other non-debt financing to ensure the financing of the state budget.
Reducing debt risks by reducing the cost of debt, extending the maturity of debt obligations, and optimizing their structure.
Maintaining relations with investors and stimulating the development of the domestic government bond market as an instrument for economic recovery.

Ukraine will continue to work to minimize key debt risks. Refinancing risk is reduced by extending the maturity of government bonds, attracting concessional resources from international partners, and conducting special debt management operations.

Currency risk remains the most significant due to the high share of foreign currency debt. Therefore, a strategic priority will be to gradually increase the share of hryvnia borrowings in the long term.

Interest rate risk is currently low. This is due to the significant share of long-term preferential fixed-rate debt.

Contingent liability risks are also under control: the volume of loans under state guarantees is declining, and the restructuring of state derivatives (contracts) was recently completed.

The adoption of the Strategy is Ukraine's commitment to the EU under the Ukraine Facility: paragraph 2.6 of Ukraine's Plan identifies the need to reform the public finance management system, including updating the debt strategy.