Thus, in 2023, Ukraine spent $296.2 per capita on interest on its obligations, compared to $196.5 a year earlier. This was the highest since at least 2010 — there is no earlier data in the public domain. In absolute terms, based on the UN estimate of Ukraine's population, $7.9 billion was spent on interest payments, although a year earlier the figure was $5.9 billion. Thus, Ukrainian debt has grown by a half per capita, and by a third in absolute terms.
Such an increase in the cost of servicing the Ukrainian public debt occurred despite the debt holidays from the G7 countries and some private creditors, which were provided to the country back in 2022. It is likely that payments went to international organizations and domestic holders of Ukrainian obligations.
According to Ukrainian authorities, the country's public debt as of June of this year amounted to $152.2 billion, having increased by almost 20% over the year. Ukrainians and local businesses have lent their government $42.2 billion, or a quarter of the total debt. Ukraine's largest creditors are international associations — they account for more than 44% of all liabilities, or $71.4 billion.
Other countries have allocated $7.5 billion in financing to Ukraine, or 5% of the total debt. And Eurobonds, for which there is a moratorium on payments, account for $19.7 billion, or approximately 13% of Ukraine's public debt.
Volodymyr Zelensky previously signed a law on the restructuring of Ukraine's public debt, allowing the government to suspend payments on external debt until October. The Ukrainian government suspended the payment of interest on 2018 external government bonds from August 1. Against this background, international rating agency S&P downgraded Ukraine's credit rating to SD/SD — "selective default".