Finance Minister Danyliuk: Ukraine to borrow $1 bln abroad in autumn

Ukrainian Finance Minister Oleksandr Danyliuk has announced Ukraine will resume borrowings on foreign markets and expects to raise $1 billion this autumn after the launch of the land and pension reforms, according to the Finance Ministry`s press service, which cited the minister`s interview with The Wall Street Journal during his recent visit to the United States.

”Ukraine Finance Minister Oleksandr Danyliuk said in an interview Thursday that his government might wait until the fall to seek around $1 billion in the international bond market, following the enactment of long-delayed pension and land overhauls he hopes will be completed in the next month,” the WSJ wrote on April 20.

Ukraine is required to re-enter the international bond market under the terms of an emergency lending package.

Danyliuk was also optimistic about Ukraine`s economic prospects. ”The Ukrainian economy grew last year after steep contractions that accompanied Russia`s annexation of Crimea in 2014 and Russian military activity in Ukraine`s east. Mr. Danyliuk expects the economy to growth 2.2% this year,” the WSJ wrote.

Earlier, the updated Memorandum of Cooperation between Ukraine and the International Monetary Fund (IMF) after the third review of the Extended Fund Facility says that the Ukrainian government plans to issue five-year eurobonds worth $1 billion at 9% per annum. The issue is scheduled for the end of 2017.

The IMF forecasts that Ukraine will annually raise $2 billion on foreign markets every year, starting from 2018. In 2021, it is expected to borrow $3 billion.

The previous issue of eurobonds took place in September 2016 when Ukraine raised $1 billion from the placement of the bonds on the foreign market against U.S. government guarantees.

Avatar photo


An independent media focused on Ukraine.
Follow us on social media:

Submit a Comment

Your email address will not be published.

Share This

Share this post with your friends!