Ukraine's National Debt Decreases by $1.8 Billion in February 2026

What Happened

In February 2026, Ukraine's total public debt, including guaranteed state debt, diminished by $1.8 billion, bringing the total to $213.18 billion. The information was disclosed by the Ministry of Finance on March 31, 2026.

The reported reduction represents a decrease of 1.41 billion hryvnias, equating to approximately $1.8 billion in U.S. dollars. This decline reflects ongoing adjustments in loan structures and repayment terms.

Key Details

As of February 28, 2026, the breakdown of Ukraine's state debt is as follows: - **Total External Debt:** 6.93 trillion hryvnias (75.25%) or $160.41 billion. - **Total Domestic Debt:** 2.009 trillion hryvnias (21.82%) or $46.1 billion.

• **Guaranteed State Debt:** 270.55 billion hryvnias (2.94%) or $6.26 billion. The debt composition is predominantly made up of concessional loans from international financial institutions and foreign governments, which account for 65.6% of the total debt.

Additionally, government bonds comprise 21.8% of the total debt, with 9.2% being from the external market, while loans from commercial banks and other financial institutions represent about 3.4%. The average interest rate for the national debt increased slightly to 4.53% in February, up from 4.51% in January 2026.

In contrast, the average interest rate was significantly higher at 6.2% in February 2025. The average maturity period of the debt also extended to 13.23 years, an increase from 13.39 years in January 2026.

Why It Matters

The decrease in debt figures indicates a longer repayment period and cheaper debt servicing costs, reducing mid-term refinancing risks for Ukraine. This improvement might provide a more stable financial footing for the government's ongoing budgetary needs, especially as the country braces for future economic demands.

Background

In the first two months of 2026, the Ukrainian government raised nearly ₴132 billion through the issuance of government bonds. The currency structure of the national debt shows that the euro is the dominant currency, accounting for 44.9% of the debt, followed by U.S.

dollars at 22.5% and hryvnias at 20.1%. Special Drawing Rights (SDR) and other currencies represent smaller portions of the debt. Continuous adjustments and fluctuations in the debt structure are essential as Ukraine navigates economic recovery plans and strengthens its fiscal framework post-conflict.

The emphasis on concessional loans aligns with the country's intent to leverage international support for its financial stability.