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Ukraine needs to pay off $10 billion of external debts within a year

Ukraine's foreign exchange payments on public debt will exceed $10 billion in the next 12 months.

This was reported in the June report of the National Bank of Ukraine on financial stability, Interfax-Ukraine reports.

"Over the next 12 months, the government and the NBU foreign exchange payments on state and guaranteed debt will exceed $10 billion. In the hryvnia segment of the market, repayment of principal amount of the debt and interest in the second half of the year will exceed 130 billion UAH," the document reports.

NBU notes that the schedule of debt payments in the next three years will be hectic. But the loading is distributed relatively evenly, and that should not pose significant problems for the Ministry of Finance.

According to the report, the funding needs may be mitigated by the $650 billion additional Special Drawing Rights (SDR) issue discussed by the International Monetary Fund (IMF) to support the global economic recovery.

"If the issue is approved by the IMF Executive Directors, Ukraine will increase its international reserves by about $2.7 billion. However, there is a possibility that these funds will be allocated after the period of peak payments in September, there is no definite answer about the possibility of their use to finance the budget deficit," the NBU stated in this report.

In 2020, Ukraine allocated $16 billion to pay off the state debt.

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