Ukraine gross reserves rise USD 1 bln in November
Ukraine’s gross international reserves rose 5.8% m/m, or USD 1.0 bln, to USD 17.7 bln in November owing to the placement of international Eurobonds and a foreign currency purchase by the central bank on the ForEx, the National Bank of Ukraine (NBU) reported on Dec. 5. In 11M18, Ukraine’s reserves declined 5.8% YTD, or USD 1.1 bln.
In November, Ukraine’s payments on debt in foreign currency was lower than receipts from government bonds. During the month, reserves were replenished by receipts from the placement of international Eurobonds for USD 2 bln and local Eurobonds for USD 82.9 bln. At the same time, Ukraine called USD 725 mln in Eurobonds issued in August and paid USD 439.1 mln (in the equivalent) to the IMF. Other government payments for repaying and servicing foreign currency debt amounted to USD 238.2 mln.
The NBU’s net foreign currency purchases on the ForEx amounted to USD 232.8 mln. The NBU also reported on the increased value of its security portfolio by USD 50.4 mln (adjusted to market value and the currency exchange rate).
As of Dec. 1, Ukraine’s gross reserves amounted to 3.0 months of imports, the NBU said.
Evgeniya Akhtyrko: Ukraine’s reserves are expected to increase significantly during December, as three key lenders to Ukraine – the EU, the Word Bank and the IMF – are supposed to provide financing of about USD 3 bln. Meanwhile, foreign currency outlays during the month will be relatively low, including the repayment of USD 132.5 mln on local Eurobonds and around USD 170 mln to the IMF. That said, Ukraine’s reserves at the year end should amount to around USD 20 bln, providing a solid stockpile for increased needs for debt servicing in 2019.