Page 49 - bne IntelliNews Country Report: Ukraine Dec17

opportunity for implementing some of the more difficult reforms is gradually closing; Ukraine will hold presidential elections in the first quarter of 2019 and parliamentary elections are expected to occur in the third quarter of 2019," SP added.
So far, the Ukrainian authorities have only drawn about half of the $17.5bn available under the IMF support package.
Public finances remain strained by costs associated with the clean-up of Ukraine's banking sector and only gradual progress in reducing the large pension fund deficit. Lastly, the agency's ratings remain constrained by high consumer price inflation that remains well outside the National Bank of Ukraine's(NBU's) target, S&P added.
The agency believes that the NBU has effectively tempered the high inflation levels of 2015. At the same time, it is building credibility in its move toward an inflation-targeting regime. High nominal interest rates and the banking sector's high NPL ratio prohibit stronger credit growth and indicate as till-weak mechanism for monetary transmission, the agency wrote in the statement.
8.4.1 International ratings - specific details of rating actions corp/regional etc
Fitch Ratings has affirmed Ukraine's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B-' with a Stable Outlook.
A full list of rating actions is at the end of this rating action commentary.
Ukraine's ratings reflect weak external liquidity, a high public debt burden and structural weaknesses, in terms of a weak banking sector, institutional constraints and geopolitical and political risks. These factors are balanced against improved policy credibility and coherence, the sovereign's near-term manageable debt repayment profile and a track record of bilateral and multilateral support.
International reserves continue to increase reaching USD18.5 billion in September, the highest level since the end of 2013, driven by external disbursements and residents' use of FX assets. Ukraine's external buffers remain weaker than 'B' peers (3.5 months of CXP). Increased exchange rate flexibility, manageable foreign-currency commitments and moderate external imbalances mitigate near-term pressures on international reserves. FX controls still cushion external liquidity, although they continue to be gradually eased.
Near-term financing risks are limited, as sovereign debt repayments remain manageable due to the 2015 debt restructuring, the high proportion of domestic debt held by public sector institutions and multilateral support. USD1.59 billion in cash in Ukraine's treasury and domestic FX liquidity provides the sovereign with space to bridge gaps in external disbursements in the short term. Ukraine has also actively pursued liability management operations, mostly with the central bank, to ease its debt repayment profile and extend maturities over coming years.
49 UKRAINE Country Report December 2017 www.intellinews.com