Ukraine's state debt payments to total $18 bln in 2023, with peaks in March, May, June, and Nov - Finance Ministry

MOSCOW. Jan 9 (Interfax) - Payments on Ukraine's state debt in 2023 will total UAH 658.4 billion, or $18 billion at the current exchange rate, under the agreements in effect at the beginning of the year, while foreign debt payments will total UAH 122.4 billion, or $3.3 billion, the Ukrainian media reported, citing the Ukrainian Finance Ministry's website.

Of total foreign debt payments, UAH 28.2 billion account for servicing and UAH 94.2 billion for repayment.

According to the Finance Ministry, UAH 14.9 billion must be paid this year following the agreements reached last summer with Eurobond holders and the Paris Club on deferral of payments to repay commercial debt, UAH 3.1 billion for debt service and UAH 4.2 billion and UAH 2 billion respectively for official loans. All other payments will go to the International Monetary Fund (IMF) and other international financial institutions.

As for domestic debt, this is domestic government bonds. The interest payments on these bonds are higher, amounting to UAH 203.2 billion, while UAH 332.8 billion will need to be earmarked for redemption.

According to the ministry, the peaks of overall national debt payments fall on March at UAH 72.8 billion, on May and June at UAH 102.6 billion and UAH 89.9 billion, and on November at UAH 84.1 billion.

As for foreign debt alone, the most needs to be paid in September at UAH 32.02 billion, while UAH 18.8 billion needs to be paid in December, UAH 14 billion in March, and UAH 10 billion or less in other months.

Payments on the national debt will total UAH 16 billion this month according to the Finance Ministry, including UAH 2.8 billion for foreign debt. February's payments will total UAH 46 billion and UAH 10 billion respectively.

Ukraine has set a goal of achieving 100% rollover on government bonds within the Monitoring Program with the IMF, both in hryvnia and foreign currency. As for foreign aid, there are plans to raise $38 billion to cover the budget deficit.

Payments on state debt for 2024 are estimated at UAH 649.9 billion, or $17.8 billion, under the agreements currently in effect, including $10 billion on foreign debt, of which more than half in the third quarter, when the deferral on Eurobonds ends, the Finance Ministry said.

Payments on the national debt will rise to UAH 508.2 billion in 2025, including UAH 306.4 billion for foreign debt, and then fall to UAH 467.5 billion in 2026, including UAH 310.7 billion for foreign debt, UAH 424.9 billion in 2027, including UAH 232.1 billion, and UAH 383.7 billion in 2028, including UAH 237.6 billion, the ministry said.

Ukraine's total state debt in the first 11 months of 2022 rose 9.7% in terms of U.S. dollars, or by $9.51 billion to $97.69 billion, while it increased 47.1%, or by UAH 1.258 trillion, to UAH 3.93 trillion in hryvnia equivalent due to devaluation.

Ukraine's total foreign debt for 11M increased 21.2%, or by $12.1 billion, to $69.3 billion, while total domestic debt went up 25.5%, or by UAH 283.7 billion, to UAH 1.395 trillion.

The official exchange rate for January 9 is UAH 36.57/$1.