Page 36 - UKRRptApr21

suspended due to the entry into force of Law No. 540-IX dated March 30, 2020, which, in connection with the quarantine, imposed restrictions on the privatization of large facilities – both preparation for sale and holding the auctions. Bill No. 4543 removes this provision.
6.2 Debt
Ukraine’s state and state-guaranteed debt rose 0.7% m/m to $91.4bn as of February 28, the Finance Ministry reported on March 25. State domestic debt inched up 2.1% m/m to $36.7bn, while state foreign debt stayed flat at $44.3bn. State-guaranteed debt declined 0.9% m/m to $10.4bn. In UAHterms, the overall state debt declined 0.2% m/m in January to UAH2,553bn, or 60.9% of Ukraine’s GDP in 2020.
According to MinFin the four main objectives for state debt management are:
1. Increase the share of state debt denominated in local currency;
2. Lengthen average debt maturity, and ensure a smooth state debt repayment profile;
3. Attract long-term concessional funding;
4. Continue developing strong investor relationships and further improve the state debt management policy framework.
The government said that expanding the universe of primary dealers will promote competition in the primary market of government bonds, increase liquidity, and facilitate the reduction of the cost of borrowing in the local market. “The development of the domestic government securities market allows the Ministry of Finance to achieve one of the objectives set out in the Medium-Term Public Debt Management Strategy, namely, to increase the share of state debt in the national currency” a the MoF website said.
Ukraine’s strong debt service profile during 2019 - 2022 indicated a low number of retapping peaks is the result of Ukraine’s active state debt management policy. This follows the restructuring of the state and state-guaranteed external commercial debt in 2015. “The average state debt interest and redemption amount accounts for UAH484.7bn with a standard deviation standing at UAH4.6bn in 2019 - 2022, based on outstanding and planned debt obligations.”
36 UKRAINE Country Report April 2021 www.intellinews.com