Ukraine’s state debt exceeded $76 billion

KIEV, September 5. /TASS/. The state debt of Ukraine in July rose 1.39%, or by $1.05 billion to $76,06 billion.

Such data are published by the Ministry of Finance.

Public and publicly guaranteed debt at the end of July amounted to 1,971 trillion hryvnia ($76,06 billion) against 1,957 billion hryvnia ($75,01 billion) a month earlier. The total size of direct public debt as at 31 July amounted to 1,659 billion hryvnia ($64,04 billion) against 1,651 trillion hryvnia ($63,26 billion a month earlier). The direct external debt for the month increased by $0.19 billion to $of 37.44 billion while direct domestic debt increased to 689,42 billion hryvnia ($26,60 billion). Government guaranteed debt at 31 July was 311,46 billion hryvnia ($12,02 billion).

As explained by the Ministry of Finance, increase the amount of debt in dollar terms with its reduction in local currency is a consequence of changes in the official rate of the hryvnia. July 31, the official exchange rate of hryvnia to the dollar according to the national Bank of Ukraine made up of 25.91 hryvnia per dollar, whereas from 30 June 26,09 hryvnia per dollar.

In 2016 the total public debt of Ukraine increased from $65,51 billion to $70,97 billion.

Tough times still ahead

Now every Ukrainian citizen is about $1760 debt. Ukraine spends on debt service 4% of GDP, which exceeds $3.8 billion annually. But, according to experts, the most difficult times are still ahead. The loan servicing this year will take 111.3 billion hryvnia, and the repayment of principal – 129,6 billion hryvnia ($5 billion). In two years Ukraine will have to repay $11 billion of foreign loans.

The level of debt relative to GDP has reached about 80%. “If the economy will grow at the same rate as now, in 2019 it will mean a default,” – says Director of the analytical Department of Concorde Capital Oleksandr Parashchiy.

Credits allocate to Ukraine the international monetary Fund, the world Bank, the European Union, the European Bank for reconstruction and development, USA, etc.