Public debt increases 1.5% m-o-m to USD 51.9 bln in November

Total public debt (direct and guaranteed) rose 1.5% m-o-m in November and amounted to USD 51.9 bln or 39% of GDP 2010E, according to the Finance Ministry. Mykyta Mykhaylychenko: The increase stemmed from (i) the issuance of UAH 7.4 bln (USD 0.9 bln) in 5Y bonds to boost Naftogaz’ equity (these bonds were then swapped into cash with state-owned Oshchadbank and Ukreximbank); and (ii) the issuance of USD 568 mln 7Y Eurobonds by the National Agency for Ukraine’s Preparation for Euro-2012 with full state guarantee. Since the beginning of the year, total state debt rose 30%. We expect public debt could reach USD 54 bln (on the back of USD 0.5 bln Eurobond placement, USD 1.5 bln tranche from the International Monetary Fund and further UAH bond placements) or to 41% of GDP by end-2010 and 43%-44% of GDP by end-2011.