Canada Is Happy to Provide Ukraine With Weapons — But Not Debt Relief
Although Ukraine is hobbled by the debt it owes its international creditors, Canada’s support for the country does not include any debt relief. It does, however, include guns and even more loans.
The Canadian government has earmarked a half billion dollars in new funding for arms for Ukraine. (Joe Raedle / Getty Images)
Ukraine owes the International Monetary Fund (IMF), World Bank, European Union, Canada, and other international creditors around US$125 billion — almost 80 percent of its GDP. Amidst an outpouring of support for Ukraine, no Western leader has called for international debt forgiveness.
Since the beginning of Russia’s invasion, Ukraine has paid international creditors hundreds of millions and is supposed to pay billions of dollars more in debt charges this year. Between January and March, Ottawa has transferred at least 83.8 million dollars’ worth of military aid to Ukraine. In addition to these military supplies, new loans are in the offing.
In the face of Ukraine’s hardships and in spite of the acclaim to which pro-Ukrainian gestures are currently met, there has been virtually no discussion of debt relief for Ukraine. Canada and other powerful debt holders appear to support Ukraine fighting Russia. It is less clear that they care about Ukraine’s economy, democracy, or sovereignty.
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