Ukraine treasury residuals rise 25% in March

Residuals at the State Treasury of Ukraine rose 25.1% to UAH 21.1 bln as of April 1 from UAH 16.8 bln a month ago and UAH 26.7 bln as of April 1, 2015, according to an April 1 report. Accumulations reached a record high at the start of December at UAH 48.0 bln (2.4% of GDP).

Alexander Paraschiy: The increasing Treasury accumulations means that the budget remains in good shape and there was even an opportunity to stock away some funds in March. Given that tax collections slowed in February to 16.2% yoy from 32.7% yoy in January, it’s likely the extra funds were a central bank wire of profits (UAH 38 bln budgeted for the year). We consider that fiscal accounts to be safe so far and the Finance Ministry will be in a position to meet its 3.7% of GDP deficit target set for the year.