Ukraine's gross foreign debt decreased by 3.7 percent in January-June 2014, to $136.79 billion, the National Bank of Ukraine (NBU) has said.
‘The key factor in the reduction of the debt over the period was the decline in foreign liabilities of private sector by $7.4 billion, while the state debt grew due to official borrowing by the government,’ reds the report.
As for GDP, the debt grew from 78.1 percent as of early 2014 to 81.8 percent of GDP.
According to the report, foreign liabilities of the public administration sector and monetary and credit regulators has grown by $2.1 billion since early 2014, to $33.8 billion after raising credits from the World Bank ($750 million) and EU (EUR 618 million) by the government in the second quarter of 2014.
In addition, under the Stand-By Arrangement (SBA) in H1, 2014, the government and NBU received $3.2 billion from the IMF, and the country paid out $2.4 billion under IMF loans.
As for GDP, the debt of the public administration sector and monetary and credit regulators grew from 17.4 percent to 20.2 percent.
The foreign debt of the Ukrainian banking sector in H1, 2014 narrowed by $1.3 billion, to $21.3 billion or 12.7 percent of GDP.
The foreign debt of other economic sectors (including intercompany debt) fell by $6.1 billion in H1, 2014, to $81.7 billion, thanks to the decline in short-term debt on foreign trade transactions by $5.6 billion (including due to exchange rate fluctuations – by $1 billion) and the decline in liabilities on credits by $900 million.
As for GDP, the debt of other sectors grew from 48.2 percent to 48.9 percent of GDP.
The intercompany debt as of late H1, 2014 reached 6.8 percent of GDP.
According to the NBU, the U.S. dollar remains the major currency of foreign borrowing by Ukraine (77.7 percent).
According to the report, short-term remaining maturity foreign debt in H1, 2014 fell by $2.7 billion, to $58.9 billion ($41 billion not taking into account trade loans).
‘The decline in the remaining maturity foreign debt was seen thanks to the fall in the short-term debt of the real economic sector (by $5.7 billion for trade loans). In addition, the volume of future payments of the public administration sector fell (by $1.4 billion),’ reads the report.
