Ukraine's state debt exceeds $76 billion

The government debt of Ukraine in July grew by 1.39%, or by $1.05 billion, reaching $76.06 billion. Such data was published by the Ministry of Finance of the country.

State and publicly guaranteed debt at the end of July amounted to 1.971 trillion hryvnia ($76.06 billion) against 1.957 trillion hryvnia ($75.01 billion) a month earlier. The total amount of direct state debt as of July 31 was 1.659 trillion hryvnia ($ 64.04 billion) against 1.651 trillion hryvnia ($ 63.26 billion a month earlier). At the same time, direct foreign debt for the month increased by $0.19 billion - up to $37.44 billion, while direct domestic debt increased to 689.42 billion hryvnia ($26.60 billion). The state-guaranteed debt as of July 31 was 311.46 billion hryvnia ($12.02 billion).

As explained by the Ministry of Finance, the increase in the amount of the government debt in dollar terms, when it decreases in the hryvnia, is a consequence of changes in the official exchange rate of the hryvnia. On July 31, the official exchange rate of the hryvnia against the dollar according to the National Bank of Ukraine was 25.91 hryvnia per dollar, while on June 30 - 26.09 hryvnia per dollar.

In 2016, the total national debt of Ukraine increased from $ 65.51 billion to $ 70.97 billion.

Now for every Ukrainian there is about $1,760 of the national debt per each. Ukraine spends 4% of GDP on external debt servicing, which exceeds $3.8 billion annually. But, according to experts, the hardest times are yet to come. The loan servicing this year will take 111.3 billion hryvnia, and for repayment of the principal amount - 129.6 billion hryvnia (about $5 billion). In two years, Ukraine will have to return $11 billion of external loans.

The level of public debt in relation to GDP has already reached about 80%. 

"If the economy grows at such a rate as it is now, in 2019 it will mean a default," believes Alexander Parashchy, director of the analytical department at Concorde Capital.

Credits to Ukraine are allocated by the International Monetary Fund, the World Bank, the European Union, the European Bank for Reconstruction and Development, the United States, and others.

DONi News Agency