Ukraine Markets Daily (January 23, 2018)

Market news

  • The total amount of Ukraine’s state and state-guaranteed debt reached the level of USD 76.3 bn by the end of November 2017

Market comment

The UX index decreased by 0.9% yesterday while the PFTS index was up by 0.1% (in UAH terms). The WIG-Ukraine index remained unchanged. On the interbank exchange market, the USD/UAH was up by 0.1% to UAH 28.90 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 28.84.

 

The total amount of Ukraine’s state and state-guaranteed debt reached the level of USD 76.3 bn by the end of November 2017

According to the Ukraine’s Ministry of Finance, as of November 30, 2017, the total amount of state and state-guaranteed debt reached the level of USD 76.3 bn, particularly government debt increased by USD 190 mn (+0.3% m/m) while the state-guaranteed debt decreased by USD 160 mn (-1.4% m/m). Since the beginning of the year 2017, Ukraine’s debt grew up by USD 4.3 bn (+7.1% compared to the debt amount as of December 31, 2016) and the amount of debt guaranteed by Ukraine increased by USD 1.1 bn (+10.4%), resulting in a USD 5.4 bn (+7.5%) growth of the total state and state-guaranteed debt.

Our view:

The amount of Ukraine’s debt outstanding remained almost unchanged in November, due to the absence of successful local bonds placements during the month. The Ministry of Finance has failed several auctions as a result of its slowed reaction to the growth of the key policy rate of the National Bank of Ukraine. For eleven months of 2017 more than 64% of debt were attracted from external sources, including USD 2 bn of liabilities to international financial institutions and Eurobonds placement’s net result of USD 1.4 bn.

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