Ukraine gross reserves inch up 0.5% to USD 18.7 bln in October

2017/11/9 11:15:09

Analyst: “…a rollover of local Eurobonds is the only available source to prevent gross reserves from sharply falling in the next few months. Against this backdrop, we project gross reserves will slide to USD 18.0 bln by the end of 2017.”

 


KYIV, Nov 9, 2017 - Ukraine's gross international reserves inched up 0.5% (USD 98 mln) to USD 18.7 bln, driven by the placement of local Eurobonds (USD 170.3 mln) and swap operations (worth USD 100 mln), Concorde Capital informed clients based on a National Bank of Ukraine (NBU) report on Nov. 7. Also USD 147.2 mln was spent on ForEx interventions, while USD 30.9 mln was allocated on debt servicing needs. By the end of October, gross reserves covered 3.7 months of future imports.

 

Concorde analyst Alexander Paraschiy added: “The swaps and local Eurobonds prevented gross reserves from falling last month, but they will start falling actively this month. In November-December, Ukraine will have to repay USD 604 mln to the IMF, including USD 84 mln in interest, and USD 651 mln in local Eurobonds.

 

“Also, the central bank will have to spend more on ForEx interventions amid mounting depreciation pressure on the heel of swelling budget spending. Making things harder, a possible source of relief, the next IMF loan tranche, has been delayed till 2018. Indeed, a rollover of local Eurobonds is the only available source to prevent gross reserves from sharply falling in the next few months. Against this backdrop, we project gross reserves will slide to USD 18.0 bln by the end of 2017.”

 

 

For more information, link here: www.concorde.ua 

 

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