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Writer's pictureOleksii Kushch

What should Ukraine do with its national debt?



1. Write off 50% of the debt. Negotiate with both the London and Paris creditors' clubs.


2. Restructure the remaining 50% for 20 years.


3. Reduce the service rate (coupon rate) to 3%.


4. Revise the terms of the GDP warrants - cap on the maximum amount of payments at no more than 0.5% of GDP, reduce the maturity to 10 years; increase the GDP growth rate for payments to 5%; reduce the percentage of payments from GDP growth to 10%.


5. Reprofile (write-off and restructure) the Ministry of Finance's debt to the NBU.


6. Convert the debt of the Ministry of Finance to state-owned banks by issuing conversion bonds.


The goal is to reduce the burden of servicing and repaying the public debt to a maximum of 2% of GDP per year. And to reduce the debt-to-GDP ratio to below 60%.


Globally, we need to solve the debt problem once and for all for future generations of Ukrainians.


Otherwise, this noose will be tightened around the necks of children, grandchildren and great-grandchildren, and the economy will be weighed down by such weights that will not allow it to develop dynamically.


We have a historic window of opportunity only for the period of a full-scale war.

Then it will close, as it already did at the end of 2015.

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