Ukraine’s Ministry of Finance will fully refinance the repayment of foreign currency government bonds for the first time this year to meet increased defence spending needs, reported Ukraine Business News.
Last week the ministry repaid $350mn in foreign currency bonds and issued $200mn in new securities maturing in 2027. It is set to issue a further $150mn of the same bonds on September 29, meaning that September will mark the first full refinancing of foreign currency debt in 2025.
ICU analysts noted that the ministry has been gradually reducing the volume of foreign currency securities in circulation, but opted to refinance the latest repayment in full to secure additional resources for the budget after recent amendments to increase defence spending.
Over the coming three months, the ministry is expected to issue new foreign currency bonds close to their maturity dates. Ukraine faces nearly $900mn in repayments by the end of the year, including $350mn in October, $362mn in November and $188mn in early December.
Kyiv continues to rely on domestic debt issuance, foreign financing, and international aid to manage its wartime fiscal burden, with defence needs absorbing a growing share of government expenditure.
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