The National Bank of Ukraine expects that the state and the guaranteed debt in 2018 will be lower than 70% of GDP, according to an inflation report published on the institution’s website, Interfax-Ukraine reports.
“The state and the guaranteed debt relative to GDP in percentage points is expected to decrease throughout the entire forecast period (2018-2020) and achieve a level below 70% of GDP in 2018,” the National Bank said.
The regulator said that it will be caused by further growth of nominal GDP, as well as by the low volatility of the currency exchange rate and gradual reduction of external state debt along with large payments to be made during the period.
In December 2017, the aggregate state (direct) and state-guaranteed debt of Ukraine dropped by $30 million to reach $76.31 billion. At the same time, the state debt nominated in hryvnia rose by 3.86% (UAH 79.67 billion) and reached UAH 2.142 trillion.
In 2017, the aggregate state (direct) and state-guaranteed debt in U.S. dollar terms increased by 7.52% or by $5.33 billion.
The official hryvnia exchange rate used by the Ministry of Finance for debt calculation, dropped to UAH 28.07 per $1 in December, showing a 1.3% decrease compared to the same period last year.