Ukraine’s state debt fell to a record

Ukraine’s state debt in 2019, fell below 50% of GDP. This was the first time in 2013. This was reported in the Ministry of Finance of Ukraine.

Государственный долг Украины рекордно снизился

What was the national debt of Ukraine:

  • 2014 – 60% of GDP;
  • 2015 – 67% of GDP;
  • 2016 – 69% of GDP;
  • 2017 – 61% of GDP;
  • 2018 52.3 per cent of GDP.

“For the first time in the last five years we have fully complied with the terms of state borrowing, which became possible due to effective policy of public debt management”, — reported in the Ministry of Finance.

All in 2019 for the servicing and repayment of public debt was addressed in the hryvnia equivalent 119,2 billion and 345,2 billion, respectively.

Over that period internal borrowing was 341,2 billion (of which 222,6 billion were loans in the national currency), and external borrowing in hryvnia equivalent made up UAH 63.8 bln.

“Against the background of macroeconomic stability and expected economic growth, Ukraine’s demand for government bonds was supported by non-residents, received in may easy access to government bonds due to the accession of Ukraine to the Clearstream network. The share of government bonds in the portfolio of non-residents at the end of December accounted for 14.1%”, — stated in the report of the Ministry of Finance.

According to current estimates, the national debt at the end of 2019 made in UAH equivalent 1764,2 billion, and in dollar $74,5 billion, and declined relative to GDP to about 45% by the end of 2019.

Publicly guaranteed debt at year end was estimated at around 6.6% of GDP.

“In the framework of implementation of the Strategy of public debt management, we have increased the share of public debt denominated in national currency, from 33% to 41%. We also increased the average term of government bonds placed with 9 months in 2018 to about two years in 2019,” — said the Ministry of Finance.

At the same time, yields on government bonds declined significantly in local currency by 7.22 to 11.78 PP for 3-month t-bills and by 7.08 PPT to 11.42% per annum on government bonds.

The yield on the latest borrowing on the domestic market in the US dollar made a record low of 3.86%, and the last in 2019 bonds denominated in euros, Ukraine carried out at the record low of 2.22% — the lowest in the history of modern Ukraine.