Ukraine’s national debt rose by 1.2% in November and reached $82.83 billion, because of hryvnia’s continuing upsurge compared to the U.S. dollar. Altogether, the national debt rose by 5.75% in 2019.
The Ukrainian currency rose by 3.4% in November and by a total of 19% in 2019, becoming the best performing currency of the year, hurting the export-oriented economy and buffing up the national debt.
The national debt counted in hryvnia decreased by more than 8% in 2019 to Hr 1.99 trillion – the lowest since 2016 and currently equates to just under 60% of the country’s gross domestic product (GDP).
Out of this sum, Hr 1.1 trillion ($47 billion) is counted towards external debt, owned to foreign lenders such as states and international financial institutions, while Hr 825 billion ($35 billion) is counted towards internal debt, owned to holders of government bonds.
“This year we have reduced our debt to less than 60% and next year our plans are to reduce it to less than 50% (of the country’s GDP),” said Oksana Markarova, Ukraine’s finance minister, on Dec. 6, during a speech in parliament.
However, the country is still heavily reliant on foreign financial assistance. On Dec. 7, Ukraine agreed a new Extended Fund Facility program with the International Monetary Fund, providing Ukraine with $5.5 billion over three years.
The program is meant to cover Ukraine’s payment imbalances. The country is due to repay $17.06 billion in 2020 to creditors. Of this sum, $4 billion is due as interest.
