Ukraine state debt drops to USD 65 bln at end-November
13 January 2016
Ukraine’s state debt was reported at USD 65.1 bln at the end of November, a 6.1% decline from the prior month, according to Finance Ministry data released on Dec. 31. The main factor was a USD 3 bln haircut on Eurobonds. Internal debt rose UAH 5.5 bln during the month, owing to an extra state bonds issue for the needs of the State Deposit Guarantee Fund. External liabilities comprised 65.9% of total state debt.
Alexander Paraschiy: USD 65.1 bln in state debt amounts to close to 81% of GDP. Given that no IMF funding arrived in December, the year will have likely concluded at that level, which is much better than the 94% of GDP projected by the IMF. In 2016, the state debt will be increasing on the back of new loans from the IMF and western governments, amid no external redemptions. So we estimate state debt will swell to USD 73.7 bln (84% of GDP) by the end of 2016.
