Ukraine Treasury residuals plunge 39% in July

Ukraine’s Treasury residuals plunged 38.9% m/m to UAH 11.0 bln as of August 1 from UAH 18.0 bln in the prior month, according to a State Treasury report. A year ago, Treasury accumulations were much higher, UAH 33.3 bln.

Alexander Paraschiy: The main factor in the plunge was the traditional acceleration in budget spending in the second half of the year. June’s fiscal numbers, including revenue increasing 21.5% yoy, show that budget collections are still in good shape. And the Finance Ministry has left untapped UAH 38 bln of the NBU profits, which still should be wired by the year end. Since state collections are expected to be very close to the targeted level amid expanding outlays, we anticipate residuals to stay at low levels during the upcoming months.