Ukraine’s debt repayments in May-December are estimated at $6.3 billion, including $3.5 billion in foreign debt and $2.8 billion in government bonds denominated in foreign currency.
“One of the strongest challenges will be the repayment of state debt in foreign currency,” Chairman of the Council of the National Bank of Ukraine Bohdan Danylyshyn wrote on Facebook on May 29. “In May-December, $3.5 billion should be repaid on foreign state debt and $2.8 billion on government bonds denominated on foreign currency. The total sum is $6.3 billion.”
According to him, the peak periods are May and September. In particular, in May, Ukraine will have to find $1.4 billion to repay foreign state debt and $0.3 billion to redeem foreign currency bonds, while repayments in September will be $1.6 billion in foreign debt and $0.1 billion in foreign currency bonds.
In addition, Danylyshyn said, redemption of short-term hryvnia-denominated government bonds, which were bought by non-residents in February-April, would also “put pressure” on the forex market. According to his estimates, a significant part of the funds due for the repayment of hryvnia-denominated bonds will be converted into currency and withdrawn from Ukraine in July-September.
“Taking advantage of the current favorable exchange rate, the National Bank should continue buying foreign currency on the interbank market to replenish its international reserves and, possibly, increase amounts of such purchases,” the head of the NBU Council says.
Danylyshyn stresses that in terms of state debt and forex rate stability, one of the most important tasks of the Ukrainian government will be relations with the International Monetary Fund. (UNIAN/Business World Magazine)
