Ministry of Finance: Medium-Term Debt Management Strategy for 2027–2029 approved

The Cabinet of Ministers of Ukraine approved the Medium-Term Debt Management Strategy for 2027–2029. This is a foundational document that outlines the priorities and key debt policy measures of the state over the medium term.

Public debt sustainability is an important prerequisite for macro-financial stability, trust of international partners and investors, as well as a favorable environment for public and private investments. The Strategy was developed specifically to ensure efficient and sustainable debt management.

The update of the Strategy is driven by the need to take into account the new macroeconomic and security situation, as well as to define approaches to financing state budget needs in 2027–2029. The document is a continuation of the Medium-Term Strategy for 2026–2028 and builds upon the approaches established therein, taking into account current forecasts.

The provisions of the Strategy have been aligned with the Directorate-General for Neighborhood and Enlargement Negotiations of the European Commission (DG ENEST) and recognized as compliant with all requirements. This ensures the continuity of Ukraine’s fulfillment of its commitments under the Ukraine Facility.

The Strategy defines four primary public debt management objectives for 2027–2029:

1. Attract long-term concessional financing and maximise the share of grants in official support;

2. Support the development of the domestic capital market;

3. Optimise the state debt structure;

4. Maintain effective communication with investors.

These objectives are based on a comprehensive analysis of the structure and dynamics of public debt, borrowing costs, refinancing risk, interest rate risk, foreign exchange risk, and debt service expenditures.

The Medium-Term Debt Management Strategy for 2027–2029 reinforces the focus on attracting grant funding, developing the domestic capital market, optimizing debt structure, and maintaining predictable communication with investors. This is intended to lay the groundwork for a sustainable debt policy, in which the government bond market will play an increasingly prominent role in financing the state and economic recovery.