Because of the war, which will not end this year, the public debt will exceed 100% of GDP, analysts say.
The war in Ukraine will last at least until the end of the year, according to the international agency Fitch Ratings. They predicted financial consequences for Ukraine.
“We expect the war to last until 2023, pushing public debt to more than 100% of GDP, adding to large infrastructure and output spending, and adding to inflationary and external pressures, while sources of deficit financing are remains uncertain,” the statement said.
The agency’s analysts do not particularly believe in ending the war through negotiations.
“It is likely that the Ukrainian government will cede any significant territory gained by Russia, and we expect that President Putin will continue to pursue the goal of undermining Ukraine’s sovereign independence. It is unclear whether either side will have sufficient superiority of the military to achieve goals, which could lead to a protracted conflict,” the agency said.
They noted the relief for Ukraine due to the restructuring of the public debt in two years. But in the future, a broader restructuring of commercial public debt may be necessary, according to Fitch.
Following the debt restructuring agreement, Fitch upgraded Ukraine’s foreign currency credit rating from RD (limited default) to CC (insufficient creditworthiness).
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.