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Bankruptcy may await Ukraine in 2025 unless West writes off its debts — WB official

Commenting on Ukraine receiving a $1.5 bln tranche of funding under a WB program on March 29, the official said that the office of the WB country director for Russia voted against this project, citing the organization’s charter

WASHINGTON, March 30. /TASS/. Ukraine may go bankrupt as early as next year if Western countries refuse to write off its debts, including those of private businesses, a World Bank (WB) official told TASS.

Commenting on Ukraine receiving a $1.5 bln tranche of funding under a WB program on March 29, the official said that the office of the WB country director for Russia voted against this project, citing the organization’s charter. The draft document openly mentions the disastrous situation in Ukraine amid an economic recession and dwindling external aid, so if in 2025 Western lenders refuse to write off Kiev’s debts, including those of private entities and banks, the country may face bankruptcy, the official warned.

According to him, the WB’s top management acknowledged that the risks of cooperation with Ukraine are extremely high, so, like in previous transactions, the latest WB aid was funded by donors - this time, by Japan and Great Britain.

Ukrainian Prime Minister Denis Shmygal announced earlier this week that Ukraine would receive a $1.5 bln loan from the World Bank guaranteed by the UK and Japan.

On Friday, Ukrainian Finance Minister Sergey Marchenko and US Ambassador to Kiev Bridget Brink signed a bilateral agreement to defer payments on the national debt.

The Ukrainian government expects a record budget deficit of $43.9 bln in 2024 and plans to cover the bulk of it with financial aid from its Western partners.

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