Ukraine aggregate state debt increases 0.7% in October

Ukraine’s state and state-guaranteed debt increased
0.7% m/m to USD 92.63 bln as of Oct. 31, the Finance Ministry reported on Nov.
26. State foreign debt increased 1.2% m/m to USD 45.0 bln, while state domestic
debt inched up 0.1% m/m to USD 37.2 bln. State guaranteed debt increased 0.2%
m/m to USD 10.4 bln.

In UAH terms, the overall state declined 0.3% m/m in
September to UAH 2,439 bln, or 58.1% of Ukraine’s GDP in 2020.

Evgeniya Akhtyrko: The increase
of state foreign debt was mostly due to the disbursement of a EUR 600 mln MFA tranche from the EU.
The decline of debt in UAH terms was a result of 0.9% hryvnia appreciation in
October.

We expect Ukraine’s debt to increase in November
mostly due to intensified domestic borrowing. In addition, hryvnia depreciation
will contribute to the increase of the debt in UAH terms.