Ukraine’s national debt is projected to exceed 100% of its GDP by 2025, according to a new forecast from the IMF. The IMF estimates that Ukraine's debt will reach 95.6% of GDP this year and rise to 106.6% by 2025. The debt level is expected to continue increasing slightly in 2026 before decreasing by five percentage points to 102.6% in 2027.

The IMF attributes the rising debt to the ongoing war with Russia, which has put immense pressure on Ukraine's economy, as well as delays in financial assistance from international partners.

Ukraine has already received its sixth tranche from the IMF, amounting to $1.1bn, which has already been transferred to the state budget. Since the war began in February 2022, Ukraine has received $11.3bn from the IMF, making the organisation Ukraine’s third largest donor after the EU and the US.

Amid Ukraine’s escalating financial challenges, German Chancellor Olaf Scholz has announced that the G7 nations are finalising work on a $50bn loan for Ukraine. "This sends a clear signal to Putin about our long-term support for Ukraine," Scholz said.

US Treasury Secretary Janet Yellen confirmed that the United States is set to contribute $20bn to the loan package, as part of a broader G7-led initiative. "We are 99% ready, with only a few relatively small issues left to resolve," Yellen said, adding that the funding is expected to be in Ukraine by the end of the year.

Yellen also emphasised that American taxpayers would not bear the financial burden, stating, "In fact, Russia pays for supporting Ukraine." Germany’s Finance Minister Christian Lindner suggested that final details of the loan could be agreed upon by the end of this week. The EU is expected to provide €18bn, with the UK, Canada and Japan contributing $10bn.

However, Ukraine faces the risk of losing a promised €4bn from the EU as part of the Ukraine Facility, due to delays in meeting certain conditions. According to a letter from Ukraine’s Ministry of Foreign Affairs, Kyiv has failed to meet the deadlines for passing a draft law on the agreement to investigate corruption cases, which is a condition for the funding.