Page 57 - UKRRptApr24

6.2 Debt
Ukraine’s gross external debt increases to 90.7% of GDP in Q4 2023 – NBU
The volume of Ukraine’s gross external debt during the fourth quarter of 2023 increased by $10.6bn – to $161.5bn, in relation to GDP, the debt increased from 89.3% to 90.7%, such estimates were published by the National Bank of Ukraine.
Ukraine signs agreement with United States on state debt payments deferral A bilateral agreement with the United States on the deferral of payments on Ukraine's state debt was signed by Minister of Finance of Ukraine Serhiy Marchenko and US Ambassador to Ukraine Bridget Brink.
Over the year, Ukraine's gross foreign debt increased by almost 25%.
How does this threaten the financial system? Ukraine’s gross foreign debt at the end of 2023 amounted to $161.5B. That is, it increased by almost 25% (+$30.6B). This debt includes the external debt from the government, the central bank, commercial banks, and enterprises, said the head of the Committee on Finance, Danylo Hetmantsev. According to him, the main factor in the debt growth is the increase in the government's external debt by 47.1% (+$30.8B), while the external debt of the NBU and banks decreased. Private sector external debt increased slightly - by 2.8%. At the same time, the debt-to-GDP ratio is significantly lower than at the height of the 2015-2016 financial crisis. At the end of 2023, the NBU estimated it at 90.7% of GDP. "Risks for the financial system related to gross foreign debt have increased. However, for the third year of a full-scale war, these risks remain under control, as evidenced by the ratio of foreign debt to GDP and international reserves," Hetmantsev noted.
More than 3,000 Ukrainian companies are waiting for permission to service foreign debts. They have debt on foreign loans or securities that they cannot service due to currency restrictions. If they all request government funds to repay their debts, then the reserves may not be enough, which will negatively affect exchange rate stability.
57 UKRAINE Country Report April 2024 www.intellinews.com