top of page
  • 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.

1 view0 comments


bottom of page