KBRA Europe Releases Research – Ukraine Refugee Crisis: EUR36 Billion Boost Moderates Costs to Host Countries

KBRA Europe (KBRA) releases a report on the financial support that has been assembled by official creditors for Ukrainian refugee absorption, which informs our analysis of the financial risks faced by frontline countries.

With the total number of displaced persons estimated to exceed 7 million, host countries face increasing fiscal and household balance sheet risks given the costs of hosting refugees on a longer-term or possibly permanent basis. Still, in KBRA’s view, these risks are significantly diffused due to the large sums of international support pledged to help ameliorate this crisis. We estimate that as much as EUR36 billion could be available from official creditors to countries sheltering refugees (this sum excludes financing specifically targeted for displaced persons within the country). While there are still many unknowns surrounding the allocation of these funds, we believe the amounts pledged to date will greatly diffuse financing costs in host countries. KBRA is closely monitoring this highly fluid situation for its bearing on sovereign creditworthiness, particularly in heavily impacted or financially fragile frontline states.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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