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.