Biden administration plans to forgive half of Ukraine’s $9 billion loan — Bloomberg

The Biden administration has informed Congress of plans to forgive $4.65 billion of Ukraine’s $9 billion loan, Bloomberg reported.

A letter from the State Department to Congress, reviewed by Bloomberg, states that canceling the debt is “in the national interest of the United States and its EU, G7+, and NATO partners,” as it will help Ukraine prevail in the war.

The $9 billion loan was part of a $60 billion U.S. aid package approved in April 2024. According to Bloomberg, writing off half the loan would mark “the latest in a series of moves meant to bolster support for Kyiv” ahead of Donald Trump’s inauguration.

Bloomberg noted that the plan has faced opposition from Republicans. Senator Rand Paul of Kentucky said he intends to hold a Senate vote to “stop the Biden administration,” arguing that the decision shifts the debt burden onto Americans. However, with Democrats still controlling the Senate, the resolution is unlikely to pass, Bloomberg pointed out.