The Finance Ministry of Ukraine has paid a $39.75 million coupon on the two-year eurobonds that were floated in August 2012 to refinance the debt to VTB Bank worth $1 billion.

The ministry said that the funds were borrowed at 7.95% per annum.

The next large foreign payment will be carried out on June 11: the government is to pay back 10-year eurobonds worth $1 billion issued in 2003 at 7.65%.

According to the state treasury, since the start of the year and as of June 3, 2013 the state had borrowed UAH 70.96 billion, including UAH 52.98 billion on the domestic market with a five-month target of UAH 77.71 billion and the six-month target of UAH 83.3 billion.

Some UAH 12.08 billion (UAH 8.34 billion for the domestic debt) were spent on servicing the debt over the period, with a five-month target of UAH 13.22 billion and a six-month target of UAH 15.88 billion, while UAH 26.84 billion (UAH 15.26 billion) was spent on paying back the principal of the loans, with the five-month target being UAH 31.66 billion and the six-month target of UAH 40.34 billion.

According to the medium-term strategy for the state debt management for 2013-2015, Ukraine plans to increase state borrowing by 31.7%, to UAH 135.5 billion, with the share of domestic borrowing being 68.6%.

The Cabinet of Ministers predicts that payments on the state debt will grow to UAH 116.1 billion, including UHA 35 billion on debt servicing.