Ukraine aggregate state debt increased 1% in June
Ukraine’s state and state-guaranteed debt increased 1.1% m/m to USD 92.5 bln as of June 30, the Finance Ministry reported on July 26. State domestic debt increased 1.5% m/m to USD 36.8 bln, while state foreign debt slid 0.4% m/m to USD 45.0 bln. State-guaranteed debt increased 6.3% m/m to USD 10.7 bln.
In UAH terms, the overall state debt slid 0.1% m/m in June to UAH 2,514 bln, or 60.0% of Ukraine’s GDP in 2020.
Evgeniya Akhtyrko: State domestic debt increased as new borrowing at the domestic market in June exceeded the local bond redemption during the month. The increase of state-guaranteed debt was related to the placement of 7Y Eurobonds by Ukraine’s State Road Agency Ukravtodor (UKRAVT) for USD 700 mln in mid-June .
In UAH terms, the overall state debt slid mostly as a result of a 1.3% m/m hryvnia strengthening during the month.
The domestic debt will decline in July as the redemption of local bonds will exceed the receipts from local bond placement during the month. Meanwhile, the state foreign debt will increase as a result of an additional issue of 8-year international bonds on July 22 for USD 500 mln.