Ukraine gross foreign debt inches up 0.1% in 1Q17
20 June 2017
Ukraine’s gross external debt inched up 0.1% (USD 125 mln) to USD 113.6 bln as of April 1, 2017, the National Bank of Ukraine reported on June 19. The amount was equal to 117.9% of GDP vs. 121.8% of GDP at the end of 2016. On the one hand, external liabilities of deposit-taking corporations shrunk by 5.7%, or USD 515 mln. On the other hand, intercompany lending rose 4.9%, or USD 425 mln, as well as central bank liabilities (by 2.5%, or USD 159 mln).
Short-term liabilities decreased 1.8% through the quarter (by USD 841 mln) to USD 46.2 bln, mainly owing to USD 2.65 bln in repayments of corporate debt.
Alexander Paraschiy: We observe that short-term trade credits have increased slightly (after three years of steady decline), which is an indication that the economy is feeling better. Still, we can hardly expect substantial private loans inflow this year. The IMF, EU and other IFIs will remain the main source of loans in the nearest future.
Already in 2Q17, we expect gross external debt will rise by about USD 1.5 bln on the back of an IMF wire and an EU loan. By the year end, we expect gross external debt will approach the USD 120 bln mark on the heels of more wires from the IMF and other lenders.
