The Bretton Woods Project quotes Executive Director Eric LeCompte on Ukraine's debt. Read the full article here.
Calls for Ukraine debt relief grow as IMF and World Bank provide fresh loans amidst crisis
Ukraine’s external debt stood at $56.7 billion at the end of 2020, according to the IMF. Jubilee USA executive director Eric LeCompte noted in a 8 March article in Barron’s magazine that Ukraine owed $22 billion to international finance institutions (IFIs), stating: “The IMF holds more than a half of that…debt at $13.4 billion with $2 billion in debt payments owed this year…. Since Ukraine will most likely default on these payments, the IMF should act quickly to restructure the payments.”
The Fund’s executive board subsequently approved a $1.4 billion loan to Ukraine on 9 March via its Rapid Financing Instrument, while the World Bank also released a $723 million financing package on 7 March, including $589 million in new loans. While this financing provides much needed emergency support, it increases Ukraine’s substantial debt load further.