❗️The national debt of Ukraine equaled 100% of GDP: what are the reasons and whether it is so much
toxic for the economy? We discussed it with our experts.
Oleksiy Kushch, economist, financial analyst:
▪️And if there will be concessions during the war, then in the future this will be a really critical indicator. Ukraine will have to carry out real restructuring and partial debt cancellation.
▪️Not only the size of the debt is important, problem No. 1 is the cost of servicing it, which is about 15%. It will be weight on the feet of the Ukrainian economy after the war, which will not allow quick debt repayment and debt servicing.
Vasyl Furman, Doctor of Economic Sciences:
▪️According to the IMF, the ratio of debt to GDP in 2025 is expected to be at the level 106%~ 110% to GDP.
▪️This is due to the war, among the reasons: the annual expenditure on defense during the war – 20-25% of GDP, costs for restoration and reconstruction infrastructure after shelling, decrease in revenues to the budget due to the loss of territories and exports.
▪️Default now and in the future – not threatening
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