You're reading: Payments on Naftogaz’s eurobonds in October lead to rise in deficit of Ukraine’s balance of payments to $3.5 billion – NBU

The deficit of Ukraine's balance of payments in October 2014 was $3.515 billion, increasing by 9.8 times and 7.1 times compared to September this year and October last year respectively.

 “The formation of the deficit of the consolidated balance of payments ($3.5 billion) led to a reduction in reserve assets. As of Nov. 1, 2014 international reserves stood at $12.6 billion, providing import financing for the future period of 2.2 months,” reads a report by the National Bank of Ukraine (NBU), with reference to preliminary data.

According to the report, in October the deficit of the current account remained almost at the level of the previous month, amounting to $634 million.

According to the NBU, exports of goods fell by 2.9 percent compared to September, while imports remained at the level of the previous month: the reduction in exports of goods was recorded in most groups of produce.

At the same time, the deficit of trade in services in October fell to almost zero from $104 million in September.

In addition, the report states that the deficit of operations with capital and financial transactions in October amounted to $2.881 billion, while in September a surplus of $302 million was fixed.

“The deficit of the capital and financial accounts amounted to $2.9 billion, primarily due to the repayments of Naftogaz’s eurobonds. However, a net inflow of foreign direct investment in the amount of $151 million was seen,” reads the report.

The volume of cash outside banks in October increased compared to the previous month to $503 million from $225 million.