You're reading: Fitch forecasts growth of Ukraine’s state debt in 2014 to percent of GDP

The total (direct and guaranteed) state debt of Ukraine by the end of 2013 will exceed 40 percent, and by the end of next year it could reach about 48 percent, the Fitch Ratings international rating agency has said.

“The ratio of debt to GDP is expected to grow due to the fiscal
deficit, weak growth and the devaluation of the hryvnia,” reads an
agency report.

According to the schedule presented by Fitch, at the end of this year Ukraine’s total state debt will be around 41 percent of GDP.

The agency also noted that next year Ukraine will have to repay $8.2
billion on the foreign state debt, including repayments on Naftogaz’s
debts secured by the state and the debt to the IMF. This amount exceeds
one third of the National Bank’s reserves, and there is the question how
much will be refinanced, said Fitch.

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