Ukraine is discussing with major institutions ways to reduce debt payments

The Ukrainian Government Commissioner for Public Debt Management, Yuri Potsa, said Thursday, July 21, that Kyiv is talking to major international financial institutions about ways to reduce debt payments soon.

The comments came a day after Ukraine demanded its international creditors, including Western powers and the world’s largest investment firms, freeze payments for two years so it can focus its dwindling resources on
war with Russia.

The postponement step was soon supported by major Western governments and funds that lent Kyiv.

Ukraine estimates that the costs of the war, along with lower tax revenues, leave a fiscal deficit of $5 billion a month, or 2.5 percent of pre-war GDP.

Economists calculate that this pushes the annual deficit to 25% of GDP, compared to 3.5% before the conflict.