Ukraine’s external debt decreases 2.5% qoq in 1Q09

According to a National Bank of Ukraine press release, in 1Q09 Ukraine’s total external debt was down 2.5% qoq, but increased 12.9% yoy, to USD 99.2 bln. Public debt decreased 6.1% qoq (+17.2% yoy) to USD 18.1 bln, while corporate debt only shed 1.6% qoq (+7.9 yoy) to USD 81.0 bln. The banking sector reduced its debt burden by 4.6% qoq, though other sectors added 1.4% to their external liabilities. Andrii Parkhomenko: We expect corporate debt to decrease to USD 71.4 bln by yearend, as most companies, especially banks, continue deleveraging. Public debt dynamics will mostly depend on progress on the Ukraine-IMF standby loan program. In May, the IMF distributed USD 2.8 bln to Ukraine, and another USD 7.7 bln is scheduled for disbursal later this year.