Ukraine gross reserves rise USD 0.3 bln in February

Ukraine’s gross international reserves jumped 1.3% m/m
to USD 26.6 bln in February, the National Bank of Ukraine (NBU) reported on
March 5. The NBU’s net purchase of the foreign currency in February reached USD
689 mln. In addition, the government attracted USD 202 mln through the
placement of local Eurobonds.

At the same time, the redemption and servicing of
foreign currency debt during the month required USD 769 mln. In particular, the
payments on local Eurobonds amounted to USD 471 mln, while obligations to the
IMF totaled USD 241 mln. The rest of payments involved the obligations of
international Eurobonds and other international creditors.

The NBU also reported a USD 207 mln rise in the value
of its securities portfolio. As of Feb. 1, Ukraine’s gross reserves amounted to
4.0 months of imports, the NBU said.

Evgeniya Akhtyrko: The
improved situation at Ukraine’s ForEx in February prompted the NBU to intensify
its foreign currency purchases for replenishing reserves. MinFin’s decision to
renew the practice of local Eurobond placements also helped to compensate
partially outlays on debt repayments.

The major foreign currency outlay in March involves an
IMF payment of around USD 430 mln. There is a high likelihood the NBU will face
difficulty with foreign currency purchases given the growing disturbance at the
global financial markets and the increasing risks at the domestic market
related to the recent changes in the government.
Therefore, the foreign currency outlays are likely to be compensated by
receipts from the placement of local Eurobonds.