Ukraine increases gross foreign reserves 77% to USD 13.3 bln in 2015

Ukraine’s gross international reserves inched up 1.2% in December, or by USD 152 mln, to USD 13.3 bln, the National Bank of Ukraine (NBU) reported on Jan 12. This equals to 3.4 months of imports. In 2015, Ukraine’s gross reserves increased 77%, up from USD 7.5 bln (covering less than 1.5 months of imports) at the beginning of the year.

The main growth drivers in December were USD 91 mln in net dollar purchases at the ForEx and USD 100 mln in swap operations. Traditionally, the main spending was on debt servicing (USD 370 mln), including USD 174 mln in IMF redemptions.

Alexander Paraschiy: As we expected, delayed IMF funding froze gross international reserves near the USD 13 bln mark. With the approval of the 2016 budget, we should see gross international reserves resuming growth in January or February from the third IMF tranche under EFF program. In 2016, we expect nearly USD 5.8 bln arriving from the IMF, EUR 1.2 bln from the EU and USD 1.0 bln from a Eurobonds placement, in what should allow gross reserves to increase to USD 20 bln (4.7 months of imports) by the year end.