Ukraine gross foreign debt declines 1.2% q/q in 2Q18

Ukraine’s gross foreign debt slid 1.2% qoq (or USD 1.4
bln) to USD 113.8 bln as of end-2Q18, or a 1.5% YTD drop, the National Bank of
Ukraine reported on Sept. 18. Gross foreign debt is now at 101.4% of 2017 GDP.
In 2Q18 alone, foreign debt of the government declined USD 1.0 bln to USD 38.1
bln. In addition, the central bank’s foreign debt decreased USD 0.4 bln to USD
7.0 bln, while the foreign debt of the banking sector also declined USD 0.4 bln
to USD 5.9 bln. At the same time, corporate sector debt rose USD 0.3 bln to USD
53.0 bln.

Evgeniya Akhtyrko: Ukraine’s
gross foreign debt declined during 2Q18 owing to the absence of external
borrowing by the government. We expect Ukraine’s gross foreign debt to increase
by around USD 6 bln during 2H18, assuming up to USD 3.4 bln in loans from the
IMF, the EU and the World Bank, as well as a Eurobond placement for USD 2.5
bln. That said, gross foreign debt will end up at around 104% of our projected
2018 GDP, keeping the same ratio as at the end of 2017.