Ukraine Markets Daily (September 07, 2017)

Market news

  • Ukraine’s state and state-guaranteed debt increased by 1.4% in U.S. dollars in July 2017

Market comment

The UX index increased by 0.2% yesterday while the PFTS index remained unchanged (in UAH terms). The WIG-Ukraine increased by 0.5%. On the interbank exchange market, the USD/UAH was up by 0.3% to UAH 26.00 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 25.95.


• Ukraine’s state and state-guaranteed debt increased by 1.4% in U.S. dollars in July 2017

According to the information provided by the Ministry of Finance, as of 31 July 2017 Ukraine’s state and state-guaranteed debt increased by USD 1,045 mn (+1.4% m/m) to USD 76,061 mn. Ukraine’s state debt increased by USD 781 mn (+1.2% m/m) to USD 64,042 mn in July 2017. In particular, local debt grew by USD 591 mn (+2.3% m/m), while the foreign debt was up by USD 190 mn (+0.5% m/m) to USD 37,439 mn. Meanwhile, state-guaranteed debt grew by USD 265 mn (+2.3% m/m) to USD 12,018 mn. Specifically, local guaranteed debt increased to USD 763 mn (+1.0% m/m) and foreign guaranteed debt reached a USD 11,255 mn level (+2.3% m/m).

Our view:

During the July 2017 Ukraine’s state and state-guaranteed debt increased mostly due to the issue of local government bonds (OVDP) in the amount of USD 590 mn and due to the growth of debt to the international financial organizations by USD 413 mn, including both state and state-guaranteed debt. We think that the main reason for such debt growth was a need to make USD 450 mn interest payment to the International Monetary Fund (IMF) for the provided financing.


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Kind regards

Research Team