Ukraine needs to borrow 460 billion hryvnia to the end of the year

Part of the funds expect to receive from the IMF, world Bank and EU, part – to attract the domestic market.

By the end of this year, Ukraine has to take loans on 457 billion. This was announced by the Minister of Finance, Sergei Marchenko in an interview with HB Business.

He noted that Treasury plans to re-issue internal loans, “to make so-called rollover”. With regard to external debt, Ukraine is trying to finalize a program with the IMF.

“At the moment until the end of the year we need to borrow approximately 457 billion, but this includes everything: internal borrowing, and external,” he said.

According to him, Ukraine plans to receive this year from the IMF of approximately $ 3.5 billion. Furthermore, getting the IMF program will unlock funding from the world Bank (1 billion dollars), to obtain macro-financial assistance from the EU (1.7 bn euros).

“It’s main concessional loans, which are planning to get to the end of the year. Potentially they shut down the entire outside funding. If we see the need for additional funding, we will borrow on the domestic market. Active domestic market should also be one of our main sources”, – said Marchenko.

According to him, from non-residents again there is an interest to bonds of domestic Treasury bonds. The Finance Ministry wants to reduce the yield curve.

“The question of why we must be above 11% if we have annual inflation of 2.1%, bothers me. Therefore, our task, including discussions with the national Bank, to create conditions for the profitability to acceptable levels,” said the Finance Minister.

Earlier media reported that President Vladimir Zelensky has signed the law on banks, which is a condition for the allocation of IMF funds. Ukraine expects to receive the first tranche in may.

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