Ukraine state debt rises 3% mom in April

Ukraine’s state debt rose 2.7% mom (USD 1.8 bln) in April to UAH 69.2 bln, according to MinFin data released on April 24. External debt of USD 1.26 bln (3.3% mom) was the main source of the increase, while internal debt rose 1.9% (USD 0.56 bln). By the end of April, external debt accounted for 56.6% of the public debt.

Alexander Paraschiy: The state debt reached nearly 38.7% of GDP as of end-April, with a USD 1.25 bln Eurobonds placement as the main driver. Active domestic state bond placement (UAH 8.6 bln) amid lower internal redemptions (UAH 6.4 bln) also contributed to the state debt growth. Though the April debt increase was significant, the debt stock should decline in May owing to a USD 1.3 bln IMF debt redemption (due May 10). In view of the continuing active external borrowing targeting aimed at covering the wide foreign currency deficit, we update our public debt forecast to 38% GDP (from 37%) in 2013.