Ukraine’s FX payments on public debt will exceed $10 billion in the next 12 months, the National Bank of Ukraine said in its June Financial Stability Report.
“In the next 12 months, only FX payments by the government and the NBU on the state and guaranteed debt will exceed $10 billion. In the hryvnia segment of the market, repayment of principal and interest in the second half of the year will exceed UAH 130 billion,” the central bank said on its website.
The regulator said that the schedule of debt payments in the next three years remains tight. However, the load is distributed relatively evenly, which should not create significant problems for the Ministry of Finance, although the average volume of auctions should still grow.
According to the report, the financing needs may be mitigated by the additional issue of special drawing rights (SDRs) in the amount of $650 billion being discussed by the International Monetary Fund (IMF) to support the global economic recovery.
“If the IMF Executive Board approves the decision, Ukraine will increase its FX reserves by about $2.7 billion, the NBU said in the report.