Ukraine’s Financial Future: Between Default and Prosperity

In the next five years, Ukraine’s aggregate payments for external liabilities will amount to more than $40 billion. However, the net reserves of the National Bank of Ukraine stand at $5 billion. On the basis of such a ratio, the risk of Ukraine defaulting on its debt is high. Can Ukraine overcome this risk?

My response to the above question is based on a study of the increased risk of a crisis around Ukraine’s external debt in coming years. Let’s look at the context in which the Ukrainian government would face such a risk.