Ukraine's public debt has grown by $3 billion in a month
Date: 2024-08-28 Author: Michail Kovalenko Categories: ECONOMY
In July 2024, Ukraine's debt increased by UAH 206.16 billion in hryvnia equivalent, while in dollar equivalent, the debt increased by $3.20 billion.
According to the Ministry of Finance, the public debt is currently growing mainly due to an increase in long-term concessional financing from international partners. Most of Ukraine's debt consists of loans received from international financial institutions and governments of other countries.
In particular, since the beginning of 2024 as of June 30, the weighted average cost of Ukraine's public and publicly guaranteed debt decreased from 6.24% to 5.6%.
The government's foreign currency accounts received $2.483 billion in July. USA. Of this amount:
- $2.197 billion from the International Monetary Fund;
- $286 million from the placement of foreign currency government bonds.
- $185 million was paid for servicing and debt in foreign currency.
The average rate increased over the month from 1.3% to 40.99 UAH/USD.
Debt restructuring
Ukraine's creditor countries from the G7 and the Paris Club have given Kyiv a deferment on servicing its sovereign debt until the end of March 2027.
In addition, on July 22, Ukraine reached an agreement with the Committee of Owners of Eurobonds of Ukraine on restructuring payments on external debt.
The existing Eurobonds worth $23.4 billion in outstanding issue will be exchanged for a package of new Eurobonds with a nominal reduction in the cost of debt of 37% initially and a reduction in the net present value of debt of 60%.
According to the Ministry of Finance, the public debt is currently growing mainly due to an increase in long-term concessional financing from international partners. Most of Ukraine's debt consists of loans received from international financial institutions and governments of other countries.
In particular, since the beginning of 2024 as of June 30, the weighted average cost of Ukraine's public and publicly guaranteed debt decreased from 6.24% to 5.6%.
The government's foreign currency accounts received $2.483 billion in July. USA. Of this amount:
- $2.197 billion from the International Monetary Fund;
- $286 million from the placement of foreign currency government bonds.
- $185 million was paid for servicing and debt in foreign currency.
The average rate increased over the month from 1.3% to 40.99 UAH/USD.
Debt restructuring
Ukraine's creditor countries from the G7 and the Paris Club have given Kyiv a deferment on servicing its sovereign debt until the end of March 2027.
In addition, on July 22, Ukraine reached an agreement with the Committee of Owners of Eurobonds of Ukraine on restructuring payments on external debt.
The existing Eurobonds worth $23.4 billion in outstanding issue will be exchanged for a package of new Eurobonds with a nominal reduction in the cost of debt of 37% initially and a reduction in the net present value of debt of 60%.
