Ukraine's state debt in November hits record high of over UAH 1 tln

Ukraine's total (direct and guaranteed) state debt in November, in dollar equivalent fell by 5%, or $3.66 billion, to $69.34 billion, mostly due to the hryvnia's devaluation, the Ukrainian Finance Ministry reported on its website.

According to the report, in hryvnia, the aggregate state debt last month grew by 9.8%, or by UAH 92.57 billion, to a record high of UAH 1.379 trillion.

The correlation of state debt denominated in U.S. dollars and hryvnia gives an estimate forex rate of UAH 14.97 per $1 as of the end of November against UAH 12.951 per $1 as of the end of October and UAH 7.993 per $1 as of end of 2013

In January-November the aggregate state debt decreased in dollar equivalent by 5.2%, or $3.77 billion, but in hryvnia it grew by 77.6% or by UAH 453.53 billion.

Total domestic debt in November shrank by 10.8%, or by $3.58 billion, to $29.58 billion, whereas total foreign debt fell by 0.2%, or $80 million to $39.76 billion, the Foreign Ministry said.

Since the beginning of the year, total domestic state debt fell by 16.8%, or $5.96 billion, whereas foreign debt grew by 5.8%, or $2.19 billion.

As reported, Ukraine's public debt in 2013 in U.S. dollar terms grew by 13%, or $8.434 billion, and in relation to GDP - from 37.4% of GDP to 40.9% of GDP.

According to government estimates, the fall of real GDP in Ukraine in 2014 will be 7%, however, due to the acceleration of inflation to 25.3%, nominal GDP will increase to UAH 1.525 trillion.

The International Monetary Fund in the updated Stand-By Arrangement forecasts the increase in Ukraine's gross public debt in this year from 40.9% of GDP to 67.6% of GDP due to the devaluation of the national currency and the need for further government support for Naftogaz Ukrainy and banks.