Can Ukraine write off external debt

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Ukraine is offered to write off external debt
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19:21, 19.05.2022

The amount of Ukraine's public debt as of March 31, 2022 amounted to $96.8 billion or UAH 2.83 trillion.



Ekonomichna Pravda writes about this with reference to the data of the Ministry of Finance of Ukraine.

If this amount is divided by all Ukrainians, it turns out that everyone owes 2.3 thousand dollars, or almost 69 thousand hryvnia, the newspaper notes.

About 37% of this amount is owed to domestic creditors, and the rest - to external ones. With Ukraine in need of significant funds to support the economy and rebuild from the war, there are increasing calls for debt relief.

Thus, on May 11, the US Congress passed a bill to look for options for the immediate release of Ukraine from bilateral, multilateral and commercial debts.

American parliamentarians are actually instructing US representatives in international financial organizations, in particular, the IMF and the World Bank, to use the influence and authority of the United States to promote the idea of suspending payments on Ukraine's international debts.

US Congress may write off Ukraine's foreign debt
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The US Congress proposes to write off Ukraine's external debt

15:21, 12.05.22
Olena Tkalich
Olena Tkalich

In Ukraine, the Social Movement organization, which launched the corresponding website, advocates debt cancellation.

She suggests 3 steps to cancel Ukraine's external debt:

  • Temporary moratorium on debt service until the end of the war;
  • Debt cancellation of large international and supranational organizations: International Monetary Fund, European Central Bank, World Bank;
  • Transfer of debt to private investors for servicing at the European Central Bank.

However, according to Ekonomichna Pravda , despite the difficult situation with the budget, the Ministry of Finance believes that Ukraine should continue to pay its debts.

The publication notes that it indicates that the government seeks to maintain good relations with creditors, even in difficult conditions, in order to be able to raise significant funds for the reconstruction of the country after the war. The announcement of the restructuring could shake investor confidence in Ukraine. However, this trust was already shaken by the war.

English version of Socportal TG channel.
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Olena Tkalich

Expert on women's rights, persons with disabilities, motherhood in the modern context, health care reform, education and social welfare.