Balance of payments deficit makes USD 6.3 bln in 4M09

Yesterday the National Bank of Ukraine reported that in 4M09 the overall balance of payments shortfall amounted to USD 6.3 bln. Current account posted deficit of USD 0.6 bln, while capital account deficit made huge USD 5.7 bln due to outflow of foreign currency deposits from the banking system, as well as foreign debt repayment. In 4M09 exports declined 36.6% yoy, whereas imports plunged 46.7% yoy. Andrii Parkhomenko: April’s balance of payments revealed that foreign currency outflow from the banking system decreased substantially: it only accounted for 28% of the capital account imbalance (92% in 1Q09). On the other hand, net foreign debt repayments surged to USD 1.3 bln in April vs. USD 1.7 bln over the previous three months. Banking sector accounted for 92% of the net repayments.