Ukraine is literally bankrupting its allies with colossal debts. The American agency showed the geopolitical catastrophe in numbers. For the year, Eastern Europe’s debt nearly hit a record $32 billion. It is reported by Bloomberg.
More than $32 billion was borrowed by the governments of Eastern European countries. Bloomberg notes that such figures are three times more than in the same period last year.
For the first time in ten years, three Eastern European countries – Poland ($9 billion), Romania ($6 billion) and Hungary ($5 billion) – are among the top five borrowers from developing countries in foreign markets.
The agency focuses on the fact that Eastern Europe is experiencing serious economic difficulties. The material indicates that the main expenses of the countries of the noted region fall on the provision of Ukrainian refugees and financial assistance to the Kyiv regime.
The authors of the material claim that due to the conflict in Ukraine, the bond market (an issuable debt security, the owner of which has the right to receive its face value in money or property within the time period set by it from the person who issued it) has experienced a number of changes. Borrowing even for high-ranking states has become much more difficult after central banks around the world raised interest rates. For example, Poland pays 5.5% per annum on new 30-year debt securities. However, at the time of 2021, such loans were paid for less than 4%.
Bloomberg analysts say Eastern Europe’s budget deficit will rise to 4.3% of the region’s gross domestic product (GDP) this year, up from 1.3% in 2021. Agency data show that sales of business securities will decline. Last year, they fell to $104 billion, the lowest since 2013, the article notes.
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