Ukraine foreign debt grows 2.1% to USD 117.4 bln in 3Q17

Ukraine’s gross foreign debt grew 2.1% (or USD 2.4 bln)
to USD 117.4 bln as of Oct. 1, 2017, the National Bank of Ukraine reported on
Dec. 20. Foreign debt is now at 111.4% of GDP (from 121.9% of GDP at the start
of the year), driven by proceeds from Eurobond placements (USD 1.32 bln) and
boosted trade credits (rising by USD 1.3 bln).

Throughout 3Q17, short-term liabilities increased 1.4%
(USD 0.6 bln) to USD 47.5 bln, driven by the USD 1.3 bln growth in trade
credits.

Alexander Paraschiy: Growing trade credits are a good signal of improving economic activity. Very likely, trade credits will be the main source of foreign debt formation in the nearest future amid delayed IMF funding. We are keeping our initial forecast for foreign debt at USD 119.6 bln by the end of 2017. For next year, we still assume resumed cooperation with the IMF and more Eurobond placements. Therefore, we project USD 135.6 bln in foreign debt by the end of 2018, or 120.5% of GDP.