International reserves of the National Bank of Ukraine increased

Ukraine economy, Doing Business in Ukraine: International reserves of the National Bank of Ukraine increased

This article discusses the current amount of #international #reserves of #Ukraine and #prognosis for their increase as well as various #indicators of the #state #debt.

Visit our website if you are interested in the #Ukrainian_economy or #doing_business in Ukraine.

The National Bank of Ukraine announced that as of 1 December 2016 its international reserves amounted to USD 15.271 billion. While the amount of the reserves decreased by 1.6% in November, over the period of 12 months the international reserves of Ukraine increased on 16%.

The National Bank specified that the main factors which influenced the amount of its international reserves are the policy of foreign currency interventions, aid from the EU, strengthening of the USD and decrease of price of gold.

In addition, USD 147 million was paid as interest repayment on international debt of Ukraine. The amount of the state debt of Ukraine lowered by 0.4% in October 2016 and reached USD 68.35 billion. At the same time, the national currency of Ukraine has devalued by 6.9% since 1 January 2016.

We note that the Chairman of the National Bank of Ukraine forecasted that the international reserves of Ukraine will continue to gradually increase and reach USD 27.8 billion in 2018.

We also note that recently the National Bank of Ukraine issued its inflation report, in which it provided for the approximate amount of borrowing which Ukraine will require in 2017. Thus, it is planned that the International Monetary Fund will provide USD 5.4 billion. These funds are expected in several tranches over the year, approximately one tranche per each quarter. The EU will lend around USD 600 million, while over USD 1 billion shall be attracted through issuance of eurobonds guaranteed by the USA. Approximately USD 600-700 million is expected to attract from other sources. At the same time, in 2018 Ukraine expects to borrow USD 2.9 billion from the International Monetary Fund and issue bonds for approximately USD 2 billion.

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