Finance ministry expects to receive $2 bln tranche from IMF in H2 2018
The tranche from the International Monetary Fund (IMF) in the amount of SDR 1.418 ($1.98 billion according to the current exchange rate) after the fourth review of the Extended Fund Facility (EFF) will arrive in the second half of 2018. This forecast is outlined in the updated debt presentation of Ukraine posted by the Finance Ministry on its website.
The ministry said that the two problematic issues to be solved for the provision of the tranche – the increase of gas tariffs for households and the observation of the upper limit of the deficit at 2.5% of GDP – are in progress.
There is no forecast for the next six tranches under the EFF program in the presentation.
The ministry presented the schedule of expected payments on state debt for the period until 2023 as of late May 2018 (not taking into account the placement of government external loan bonds and currency notes for $725 million). According to the schedule, this year payments will be $3.4 billion, including $1.5 billion for servicing of the debt and $1.9 billion for paying of the principal of the debt to international financial institutions (IFIs).
Next year, payments will increase to $5 billion, including servicing - up to $1.6 billion. Some $1.6 billion should go to repay the principal debt to IFIs, to holders of eurobonds - $1.7 billion, to creditor countries - $0.2 billion.
According to the published schedule, external payments will reach a peak in 2020: interest - $1.5 billion, IFIs - $1.8 billion, eurobonds - $2.4 billion, official loans - $0.2 billion.
In the next three years, the cost of external debt will gradually decline: 2021 - $5 billion, 2022 - $4.1 billion and 2023 - $4 billion.
The Ministry of Finance said that, taking into account the internal debt, the payment of the state debt at the end of May this year was estimated at $11.4 billion (servicing of domestic debt - $2.7 billion, repayment - $5.3 billion), in 2019 - $10.8 billion ($2.5 billion and $3.3 billion), in 2020 - $9.1 billion (servicing of domestic debt - $1.9 billion, repayment - $1.4 billion).