Write-off or default. Where is the burden of public debt leading Ukraine?
Ukraine's external debt has critically increased to 85% of GDP. It is not yet possible to write off at least some of the debt. What can this lead to?
On June 17, the London Stock Exchange reported that the Ministry of Finance of Ukraine had failed in its attempt to negotiate with creditors to write off 25% to 60% of its government bond debt. The Ministry of Finance offered private creditors two options for restructuring Eurobonds. But it failed to reach an agreement with them.
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For developing countries, the limit of the negative impact of public debt on the economy is 65-70% of GDP. In Ukraine, this ratio has already exceeded 85%.