op_obstfeld1_Frank Hammerschmidtpicture alliance via Getty Images_ukrainecurrency Frank Hammerschmidt/picture alliance via Getty Images
en English

Life or Debt in Ukraine

Given Ukraine's current debt burden and foreseeable financing needs, its official creditors should take the lead in deferring repayments and laying the groundwork for a debt-restructuring deal. Remaining in financial markets' good graces is the last thing the Ukrainian government should have to think about right now.

BERKELEY/WASHINGTON, DC Public debt is rarely a matter of national survival, but it has become one for war-ravaged Ukraine. Two months into the country’s heroic defense against Russia’s invasion, it is becoming increasingly clear that the war could continue for many more months or even years. Victory depends not only on Ukraine’s brave, highly motivated armed forces and citizens but also on the country’s ability to muster the financial resources it needs to sustain an intense war effort indefinitely.