Ukraine's debts: Annual foreign debt repayments to exceed $7 bln in 2018-2021

The National Bank noted that the return of Ukraine to the international capital markets has become an undoubtedly positive signal not only for donors investing in debt securities, but also for potential direct investors of Ukraine.

"However, the schedule of repayment on foreign liabilities in the next few years remains quite tense. During 2018-2021, annual sums to repay and service public and quasi-public debts in foreign currency will exceed $7 billion," it said.

The NBU stressed that for this reason, it is critical for Ukraine to continue implementing structural reforms aimed at improving the business environment and conditions for long-term economic growth.

"In this context, it is still important to continue cooperation with the International Monetary Fund," the report says.

Read alsoUkraine's state debt exceeds $77 bln in SeptAs UNIAN reported earlier, Ukraine in September successfully completed the placement of eurobonds worth $3 billion at 7.375% per annum. The bond issue was the first in Ukraine's history in terms of the period of borrowing and the amount of funds raised.

In late October, the central bank announced the forecast that the next IMF loan tranche under the Extended Fund Facility (EFF) program would be received in the first quarter of 2018, and not before the end of this year, as previously expected.

At the same time, Ukrainian Finance Minister Oleksandr Danyliuk said that Ukraine could still receive the next IMF tranche this year if the parliament passes the necessary bills.

According to the IMF, to complete the fourth review of the cooperation program and receive the fifth disbursement, Ukraine must approve pension reform, accelerate privatization, and show real results in the fight against corruption.

The Verkhovna Rada passed the bill on pension reform on October 3. However, the necessary changes in legislation to speed up privatization and create an anti-corruption court have not been adopted yet.

In addition, under Cabinet decisions related to the IMF program, the gas price for households shall be revised twice per year according to import parity. However, the government stated that there are no grounds for raising gas prices for the households for the next heating season.

In March 2015, the IMF approved a four-year EFF loan program for Ukraine under which $17.5 billion will be disbursed. Ukraine has already received four disbursements from the Fund to the tune of $8.7 billion.

An IMF technical mission to discuss the draft national budget of Ukraine for 2018 will work in Kyiv on November 9-17.