Ukraine state debt declines 1.8% m/m in May
27 June 2019
Ukraine’s state and state-guaranteed declined 1.8% m/m
to USD 78.4 bln in May, the Finance Ministry reported on June 26. State debt
made up 54% of Ukraine’s 2018 GDP.
State foreign debt decreased 3.2% m/m to USD 38.9 bln,
while state domestic debt inched up 0.3% m/m to USD 29.3 bln. State-guaranteed
debt dropped 2.5% m/m to USD 10.2 bln.
In UAH terms, overall state debt increased 0.9% m/m.
Evgeniya Akhtyrko: State
foreign debt declined due to the May 16 redemption of USD 1 bln in
U.S.-guaranteed bonds issued in 2014. In addition,
Ukraine’s debt to the IMF dropped by USD 240 mln in May. The lower decline of
state debt in UAH terms was mostly due to 1.6% hryvnia appreciation in May.
The state debt in June will rise as a result of the
placement of a EUR-denominated sovereign Eurobond on June 13. We project state
and state-guaranteed debt will increase to USD 80.8 bln in 2019, or around 56%
of GDP (vs. USD 70.3 bln, or 53.9% of GDP, in 2018).
