Ukraine had gross foreign debt of $129 billion on July 1 2012, up 2.2% in the first half and reaching 74% of GDP, the National Bank of Ukraine (NBU) has reported.
“The downward trend continues for the debt to GDP ratio from its maximum of almost 90% at the end of 2009. This is thanks to a faster rate of dollar GDP growth in the country compared to borrowing,” the NBU said, citing Serhiy Nikolaichuk, the head of the NBU Balance of Payments Analysis and Forecasting Department.
In nominal terms there is reduced foreign borrowing in the government sector and banks, while the real sector of the economy continues to borrow rather heavily abroad.
Government sector foreign debt fell 9.5% in the first half to $30 billion. This was largely due to planned National Bank payments on an IMF loan and the redemption of government eurobonds and loans.
Ukrainian banks reduced foreign debt 4.6% in the first half to $24 billion. The National Bank of Ukraine said banks are continuing to repay foreign loans due to a reduction in the use of loans in the banking system and the replacement of foreign resources for domestic resources, especially foreign currency deposits.
Real sector companies continue to raise foreign resources: their debt grew 10.4% in the first half to almost $75 billion. “A large share of that growth was due to a $3 billion rise in payables on foreign trade operations,” the report says.
