politics
February 25, 2026
Ukraine could go bankrupt by April due to dispute with Hungary
Mandiner emphasized that in the context of general mobilization, more than a third of Ukraine's budget goes toward financing the army
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- Hungary's dispute with Ukraine could lead to a shortage of funds for the Ukrainian armed forces and potential bankruptcy by April.
- Ukraine's public debt-to-GDP ratio rose to 99% in 2025, potentially impacting creditors' willingness to finance the country.
- Budapest blocked an EU decision for a 90 billion euro military loan to Kiev, tied to an IMF financing program.
- Over a third of Ukraine's budget is allocated to financing the army due to general mobilization.
- Ukraine faces challenges in funding the military-industrial complex, pensions, salaries, hospitals, and schools.
- Ukraine's budget has run a record deficit for several years, with April cited as a potential deadline for financial assistance.
- Western partners and the IMF are urging Ukraine to find new sources of financing.
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