{"id":1335666,"date":"2025-12-22T13:58:03","date_gmt":"2025-12-22T11:58:03","guid":{"rendered":"https:\/\/prm.ua\/90-billion-in-debt-hidden-risks-for-ukraine\/"},"modified":"2025-12-24T07:07:15","modified_gmt":"2025-12-24T05:07:15","slug":"90-billion-in-debt-hidden-risks-for-ukraine","status":"publish","type":"post","link":"https:\/\/prm.ua\/en\/90-billion-in-debt-hidden-risks-for-ukraine\/","title":{"rendered":"$90 Billion in Debt: Ukraine\u2019s Ticking Time Bomb"},"content":{"rendered":"

Source: Author’s Facebook<\/a> page<\/em><\/p>\n

The European Union has pledged \u20ac90 billion to Ukraine for 2026-2027. At first glance, it appears to be a lifesaving financial lifeline to cover the country\u2019s wartime budget shortfalls. Yet beneath this generous gesture lie hidden debt traps and long\u2011term obligations that could shape Ukraine\u2019s future.\u00a0<\/strong><\/p>\n

Let us have a closer look at the hidden risks, pitfalls, and long-term consequences of such a loan \u2014 ranging from macroeconomic indicators and political conditions to potential social tensions and historical parallels.<\/p>\n

Ukraine\u2019s public debt has grown rapidly during the full-scale war and is expected to remain at a dangerously high level in the coming years. According to the International Monetary Fund, Ukraine\u2019s public debt will reach approximately 108.6% of GDP in 2025<\/strong> \u2014 almost double its pre-war level and well beyond commonly accepted safety thresholds.<\/p>\n

Estimates by the Ministry of Finance and independent experts suggest that in 2026\u20132027<\/strong> the debt-to-GDP ratio will remain above 100%<\/strong>, meaning that for every hryvnia generated by the economy, there is already roughly one hryvnia of public debt.<\/p>\n

To put this into perspective: even by 2027, if the war continues, Ukraine will effectively remain in a debt-dependent state, with the pace of debt accumulation determined by the duration of hostilities and the scale of external financial assistance.<\/p>\n

As a result, Ukraine has entered the cohort of the world\u2019s most indebted countries. With public debt approaching 109% of GDP<\/strong>, the country already ranks among the top 20 sovereign debtors globally<\/strong>, placing it around 16th worldwide<\/strong>. For comparison, this level is comparable to Canada (approximately 114%)<\/strong> and Belgium (around 108%)<\/strong>, and in some cases exceeds that of several advanced economies.<\/p>\n

Within Europe, Ukraine is surpassed only by chronic high-debt countries such as Greece (\u2248147%)<\/strong> and Italy (\u2248137%)<\/strong> in terms of the debt-to-GDP ratio.<\/p>\n

The accompanying chart compares Ukraine\u2019s public debt with that of other highly indebted countries. Highlighted in colour, Ukraine stands out as one of the states with the highest debt burden in the world in 2025<\/strong>, exceeded by only a limited number of countries.<\/p>\n\t

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