Page 36 - UKRRptJuly18

has budgeted to earn $800mn from privatizations this year, a figure that now seems unrealistic. By July 1, the Fund is to launch tenders for advisors for the sale of each company. Ernst & Young, already is advising on privatizing Centrenergo power generating company, searching for buyers of a 78.2% stake in the company.
Prime Minister Groysman has told parliament that the government will not sell its controlling stake in power turbine producer Turboatom, where it controls 75.2% of shares, Interfax-Ukraine reports. Instead, Groysman proposes that a 51% stake remain in state hands, and a 20%-25% stake should be sold to an “international partner with a global name and an excellent reputation.” The privatization process should “maximally take into account the opinion of the company’s management.” Concorde Capital’s Alexander Paraschiy writes: “This is a disappointing statement indicating that the Ukrainian government is not ready to sell one of its most promising assets. In our view, Turboatom may lose its competitive edge and lose a significant portion of its customer base in a couple of years if it remains in state hands.”
6.2 Debt
DEBT 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E*
External debt (US$bn, 80 101.7 103.4 117.3 126.2 134.6 142.1 126.3 118.7 113.6 124.2 eop)
External debt (% of 55.8 55.3 91 86.1 77.4 77.3 79.1 96.2 130.4 121.7 126.6 ann'd GDP, eop)
FX reserves (US$bn, 32.5 31.5 26.5 34.6 31.8 24.5 20.4 7.5 12.4 11.9 15.6 eop)
FX reserves (% of 22.6 17.2 23.3 25.4 19.5 14.1 11.4 5.7 13.6 12.8 13.3 ann'd GDP, eop)
External debt / FX 2.5 3.2 3.9 3.4 4 5.5 7 17.7 9.6 9.5 8.0 reserves (x, eop)
FX reserves imports 5.6 3.9 5.9 6 4.1 2.9 2.5 1.3 3.3 3.6 3.3 cov (months)
Source: ICU
International reserves sufficient for debt repayment. Governor of the National Bank (NBU), Yakiv Smolii, says the country's international reserves are sufficient to cover a period of peak payments on state debt until the end of 2020, even without external financing. However, further prospects for the country's economic growth will directly depend on progress in implementing structural reforms, he said at a coordination meeting with heads of the country's major banks, UNIAN reports.
Ukraine’s gross foreign debt decreased by $288 mlllion in first quarter.
During the first quarter of 2018 , the gross foreign debt of Ukraine decreased
36 UKRAINE Country Report July 2018 www.intellinews.com