Ukraine Plans to Retire Old Debt, Issue New Debt
The Finance Ministry plans to retire older debt while issuing new debt in 2020
Photo from Ukrinform – UATV
Ukraine’s public debt payments in 2020 will amount to about UAH 438.1 billion, about $16.85 billion, including UAH 145.2 billion, $5.6 billion, used to service the debt, the press service of the Ukrainian Finance Ministry has reported, referring to the draft law on Ukraine’s state budget for 2020.
According to the report, UAH 292.9 billion, $11.27 billion, will be used to repay public debt.
The ministry plans for the public debt to GDP ration to shrink to 46.7% at the end of 2020. One of the ways of achieving this ambitious goal is to gradually reduce the state budget deficit with a goal of 2.09% of GDP in 2020.
Ukraine’s public debt payments in the amount of UAH 460 billion, $17.7 billion, are envisaged in the state budget for 2019.
While retiring older debt is on the agenda, the government plans to acquire new debt as well.
“We plan to borrow about UAH 380 billion, about $14.6 billion. We mainly hope that these borrowings will be from our official lenders. We will continue to develop the local market in hryvnias,” Finance Minister Oksana Markarova announced at a briefing, a Ukrinform correspondent reported.
She stressed that the Government was striving to “take control of the debt and reduce the percentage of debt to GDP every year as quickly as possible.”
The draft law on the state budget of Ukraine for 2020 has been tabled in the Verkhovna Rada.