Ukraine Treasury residuals jump 18% in October

Ukraine’s Treasury residuals jumped 17.8% to UAH 15.9
bln as of Nov. 1 from UAH 13.5 bln in the prior month, according to a State
Treasury report. Yet these cash accumulations on the State Treasury’s accounts
are much lower than a year ago, when they were UAH 43.6 bln as of Nov. 1, 2015.

Alexander Paraschiy: The main factor in the jump was a UAH 10 bln disbursement of central
bank dividends to the budget in October. As we know from the September
statistics, the Finance Ministry has already started active budget spending in
what translated into a general budget deficit surge (UAH 20.4 bln in September,
UAH 31.7 bln in 9M16) and was reflected in a dramatic drop in residuals last
month (-43% m/m to UAH 13.5 bln as of beginning of October). Since fiscal
spending is most active in November and December, we anticipate Treasury
residuals to reach their lows.