According to the Budget Code of Ukraine, state debt means the total amount of liabilities of the state on outstanding loans as at reporting date arising from the government borrowings.
State borrowings are carried out in order to cover the state budget deficit and to refinance state debt. The right to carry out state borrowings within limits defined by the State Budget Law of Ukraine belongs to the state represented by the Minister of Finance of Ukraine on behalf of the Cabinet of Ministers of Ukraine. The Cabinet of Ministers of Ukraine defines the underlying terms and conditions of state borrowings, including the basic terms of the loan agreements and the basic conditions of issuance and the procedure for the placement of government securities.
Loans from foreign states, banks, and international financial organizations for the implementation of investment projects are attracted by the state on the basis of international agreements and are reflected as external state borrowings.
Redemption and state service payments of the state debt are paid from the state budget under the loan agreements, as well as respective legal acts, regardless of the amount of funding set forth for such purpose by the law on the State Budget of Ukraine.
The Ministry of Finance of Ukraine is responsible for the management of state debt within the limits of the powers determined by the legislation of Ukraine. For the purpose of effective management of the state debt and/or liquidity of the single treasury account (STA), the Minister of Finance of Ukraine on behalf of Ukraine is entitled to execute transactions with public debt, including exchange, issue, purchase, repayment and sale of government debt, subject to compliance with the limit of state debt at the end of the budget period.
According to the Budget Code of Ukraine, state-guaranteed debt means the total amount of liabilities of Ukrainian resident business entities on outstanding loans which are guaranteed by the state. Before coming into force of the state guarantees (guarantee case) transactions related to state-guaranteed debt don’t affect the state budget.
In order to ensure full or partial fulfillment of debt obligationsof Ukrainian resident business entities, state guaranteesmay be provided by a decision of the Cabinet of Ministers of Ukraine or on the basis of international agreements solely within the limits and by the directions specified in the State Budget Law of Ukraine. Upon the decision of the Cabinet of Ministers of Ukraine, the relevant deeds on its decisions are made by the Minister of Finance of Ukraine.
State guarantees are provided on the terms of payment, maturity, and property security in a manner prescribed by law.
State guarantees are not provided to secure debt obligations of economic entities if the direct source of repayment of loans is foreseen by the state budget (except for the debt obligations arising from loans provided by international financial organizations).
Payments related to the performance of state guarantees in the guarantee event are carried out in accordance with the relevant agreements, regardless the amount of funding determined for this purpose in the State Budget Law of Ukraine, and are reflected as crediting from the budget to economic entities with the guaranteed liabilities. State and state-guaranteed debt don't include debts of local authorities and the state enterprises, liabilities of which are not guaranteed by the state.
The limit of state and state-guaranteed debt, the limit of state guarantees are determined for each budget period by the State Budget Law of Ukraine.
The amount of state debt and state-guaranteed debt is calculated in a monetary form as the outstanding nominal amount of debt liabilities. Data on state and state-guaranteed debt is determined in national currency (UAH) and U.S. dollars at the official exchange rate of the National Bank of Ukraine on the last day of reporting period and include transactions dated that day.
According to the Budget Code of Ukraine, the total amount of state debt and state-guaranteed debt at the end of the budget period cannot exceed 60 percent of the annual nominal gross domestic product of Ukraine. This provision does not apply in the cases of the introduction of a martial law in Ukraine, a state of emergency or carrying out an anti-terrorist operation on the territory of Ukraine.
More information is available in the sections.
Also, data on state debt and state-guaranteed debt statistics can be found in the section "Debt Statistics".