World Economy

Ukraine’s Gross Foreign Debt Rises to 122% of GDP

Ukraine’s Gross Foreign Debt Rises to 122% of GDPUkraine’s Gross Foreign Debt Rises to 122% of GDP

Ukraine’s gross foreign debt grew by $700 million in January-June 2015, to $127 billion, and it considerably rose towards GDP, the National Bank of Ukraine reported.

“In the first half of 2015 debt towards GDP grew from 95.1% to 122.8% of GDP,” the NBU said, adding that the calculations include data on GDP from the State Statistics Service from January 1, 2014, not taking into account Crimea, which was recalculated at the average quarterly exchange rate in annual terms, Interfax reported.

On September 18, the regulator said that Ukraine’s gross foreign debt as of July 1, 2015 totaled $126.98 billion, which is 0.8% or $1.01 billion more than as of April 1, 2015.

According to the information published by the NBU on Monday, the foreign liabilities of the public administration and central bank sectors grew to $42.5 billion in H1 2015, from 26.4% to 41.1% of GDP.

It grew thanks to a loan of an International Monetary Fund loan of $4.9 billion, the government’s loans (including government domestic loan bonds worth $1 billion and a loan from the European Commission worth €250 million) and the swap transaction: liabilities on the central bank’s deposits grew to $2.5 billion.

Foreign debt of the Ukrainian banking sector fell by $3 billion, to $15.7 billion (15.2% of GDP). The regulator said that in H1 2015, liabilities on credits of Ukrainian banks fell by $2.4 billion, including by $2 billion on interbank credits. Liabilities of banks on bonds fell by $600 million, to $100 million.

Foreign debt of other economic sectors decreased by $4.2 billion, to $59 billion, or 57.1% of GDP. Debt fell for all instruments, including by $1.7 billion for long-term credits and eurobonds, by $300 million for short-term credits, and by $2.2 billion for trade credits.

Overdue debt for long-term credits and bonds rose by $1.1 billion.

The debt of other economic sectors (jointly with inter-corporate debt) fell by $3.7 billion, to $68.8 billion as of July 1, 2015, and it grew from 54.6% of GDP to 66.5% of GDP.

The major foreign currency for foreign loans of Ukraine as of July 1, 2015 was the US dollar (74.7%). The share of liabilities in SDR to the IMF grew from 6% as of early 2015 to 9.2%, and the share of debt in hryvnias was 3% of the gross foreign debt.

Meanwhile, the next review mission of the IMF is starting its work in Ukraine on Tuesday, September 22, Ukraine’s Finance Minister Natalie Jaresko said at a meeting of the Chicago Council on Global Affairs.