15:07 12.02.2016

Finance ministry assesses Ukraine's debt payments in 2016 at UAH 234.26 bln, including 20.2% of foreign debts

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Finance ministry assesses Ukraine's debt payments in 2016 at UAH 234.26 bln, including 20.2% of foreign debts

Ukraine's total state debt payments in 2016 using funds from the national budget are estimated at UAH 234.26 billion, including 20.2% or UAH 47.41 billion of foreign debt, according to the program on state debt management for 2016 approved by the Finance Ministry on January 29 and published on February 11.

According to the document, the figures are planned, taking into account the existing payment schedules and forecast interest rates and exchange rates, although the rates and exchange rates are not presented in the document.

The 2016 national budget was drawn up, taking into consideration the average hryvnia exchange rate of UAH 24.10/$1, although since early 2016 the official hryvnia exchange rate fell from UAH 24/$1 to 26.08/$1.

The ministry said that last year state debt payments reached UAH 135.2 billion, including 10.3% of UAH 13.88 billion of foreign debt and servicing of the debt came to 16.7% of budget revenues.

"Payments on government foreign loan bonds of 2015 (eurobonds issued during the debt restructuring) worth UAH 23.05 billion and payments on IMF's credits worth UAH 3.92 billion would have the largest share of servicing state foreign debt in the reporting period," the ministry said.

According to the program, in 2016 the national budget will be financed using a wide range of debt tools.

"Medium-term tools would have the largest share – 53.8%, the share of long-term tools will be 40.5% and short-term tools – 5.7%," the ministry said.

The share of debt tools with fixed rate will be 87.6% and with floating rate – 12.4%.

It is planned that borrowing on the domestic market would be UAH 98.44 billion or 45.2% and on foreign markets – UAH 119.55 billion or 54.8%, including UAH 15 billion to the special fund from international financial institutions (IFIs) and Poland.

The Finance Ministry said that in 2016 the share of state foreign debt of total state debt would decline from 66.3% to around 64.5%, although taking into account the issue of domestic loan bonds, the share of state debt in foreign currency would remain at around 70.2%. The share of long-term debt tools would be 61.3%, medium-term tools – 35.1% and short-term tools – 3.6%, and the average term for paying state debt would be at least 5.4 years at the end of 2016.

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