[Regnum] Ukraine will face bankruptcy as early as 2025 if the West refuses to write off its debts, including those of its private companies. TASS reported this on March 30, citing a source at the World Bank, who commented on the allocation of a $1.5 billion loan to Kiev through this organization.
“If in 2025 Western creditors refuse to write off Kiev’s debts, including the debts of private companies and banks, the country may face bankruptcy,” the source noted.
As the source clarified, the Russian directorate at the World Bank voted against the project to provide a loan to Kyiv, citing the organization’s charter.
It is emphasized that the document itself openly talks about the catastrophic situation of Ukraine’s public finances due to the economic downturn and reduction in foreign aid.
It is also noted that, in general, the organization’s management recognized the risks of cooperation with Kiev as extremely high, so the bank does not provide its own funds, but uses guarantees from donors - Japan and Britain.
As Regnum reported, in March 2024, the international rating agency S&P Global Ratings downgraded Ukraine’s long-term sovereign rating in foreign currency to “SS”. The negative outlook reflects risks to servicing Ukraine's commercial debt, given the country's government's debt restructuring plan, analysts noted.
Ukraine will never be able to pay off its debts, political scientist Bogdan Bezpalko told a Regnum correspondent, commenting on Ukraine’s multi-billion dollar debt to the International Monetary Fund (IMF). He noted that no one gives money to Ukraine for nothing and Kyiv will be forced to repay its debts.
Earlier, information was published on the IMF website that in 2024 Ukraine must pay the IMF $2.9 billion, which is 6.4% of the Ukrainian budget revenues planned for the current year. Over the next seven years, Ukraine must repay another $11.5 billion in debt.