US may cancel almost US$5 billion in debt for Kyiv

US President Joe Biden's administration has submitted to Congress a statement of intent to cancel half of Ukraine's economic aid debt, which is approximately US£4.65 billion. Source: Voice of America, citing Matthew Miller, spokesperson for the US Department of State, at a briefing on Wednesday, 20 November Details: The document grants Joe Biden the authority to forgive 50% of the loan provided to Kyiv in April 2024.

At that time, the loan was part of additional appropriations for Ukraine's security, amounting to approximately US£61 billion. Of this, about US£10 billion was allocated to Kyiv as a conditionally repayable loan rather than in the form of a grant.

It is stipulated that effective 15 November 2024, a week after the US presidential election, the incumbent president may forgive up to 50% of the loan, while the incoming president will have the opportunity to forgive the remaining 50% on 1 January 2026. Quote from Miller: "We have taken the step that was outlined in the law to cancel those loans, provide that economic assistance to Ukraine, and now Congress is welcome to take it up if they wish."

Details: Once the White House has notified Congress of the decision, lawmakers can pass a resolution to object to it.

However, Miller believes this will not happen.

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