Page 35 - UKRRptSept18

the next $1.9bn tranche is in limbo. Even if it is released it will go to pad the countries foreign reserves and wont be available for budget spending, but its arrival would unlock other sources of money from the EU as well as make it easier to borrow on the international capital market.
The government says there is no immediate risk to Ukraine’s solvency. There’s the equivalent of UAH20.9bn ($770mn) in FX accounts, according to Markarova, who says “all payments are being made on time.”
The Finance Ministry has raised more than UAH12bn in August at two debt auctions and still plans to receive dividend payments from state-owned energy company Naftogaz as well as profits from the central bank.
But the work-a-day treasury-account balance had dwindled to UAH2bn hryvnia as of August 1, a level not seen since ex-President Viktor Yanukovych’s regime crumbled. As well as the costly military conflict with Russian-backed insurgents, privatization revenue hasn’t materialized, tax receipts are lagging and hryvnia strength lowered proceeds from customs duties.
6.1.2 Budget dynamics - funding & privatization
Ukraine has placed $725mn through a private placement of short term notes maturing in 2019, the Ukrainian Finance Ministry said on August 24.
The National Bank of Ukraine (NBU) expects to obtain a new tranche from the nation's main lender, the International Monetary Fund (IMF), by the end of autumn , the regulator's deputy governor Oleh Churiy said on August 28. "Our forecast is that we will be able to come to an agreement with the IMF, and in our forecast we pledge to receive a tranche by the end of the autumn in the amount of about $2bn," Interfax news agency quoted the banker as saying duringaroundtableinKyiv. A nIMFmission willmakeaworkingvisittoKyiv from September 6 to September 19 to discuss the country’s crucial but stalled $17.5bn stand by package. According to the multinational lender, the mission will also discuss next steps, including financial assistance from the IMF in
35 UKRAINE Country Report September 2018 www.intellinews.com