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State and state-guaranteed debt increased due to a concessional loan from the EU in August 2023, but its average cost has decreased since the beginning of the year

In August 2023, Ukraine's state and state-guaranteed debt increased by UAH 36.96 billion in the hryvnia equivalent and by USD 1.01 billion in the US dollar equivalent. 

As of August 31, 2023, Ukraine's state and state-guaranteed debt totalled UAH 4,897.56 billion or USD 133.93 billion. This includes state and state-guaranteed external debt - UAH 3,353.48 billion (68.47% of the total amount of state and state-guaranteed debt) or USD 91.70 billion. The state and state-guaranteed domestic debt - UAH 1,544.08 billion (31.53%) or USD 42.22 billion. 

The increase in the amount of state debt in August was mainly due to the receipt of the seventh tranche of EUR 1.5 billion from the EU's large-scale Macro-Financial Assistance (MFA) programme.

In terms of Ukraine's creditors, the largest portion of state and state-guaranteed debt is held by the international financial institutions (IFIs) and foreign governments (45.23%), followed by borrowings on the domestic market through the sale of government securities (30.21%), Eurobonds (18.1%), and by other creditors (6.46%).

As for the currency structure of the state and state-guaranteed debt, UAH 1,293.91 billion (26.42%) was in the US dollars, UAH 1,428.58 billion (29.17%) was in euros, UAH 1,407.98 billion (28.75%) was in hryvnia, and UAH 767.09 billion (15.67%) was in other currencies, including special drawing rights (SDRs), pounds sterling, Canadian dollars, and Japanese yen.Since the beginning of the year, the average cost of state and state-guaranteed debt has decreased by 0.71 percentage points to 6.97%.

In particular, the cost of state debt decreased by 0.92 percentage points to 6.95% (domestic debt - 13.89%, external debt - 3.32%). The cost of state-guaranteed debt increased by 1.31 percentage points to 7.18%.

At the same time, the average maturity of Ukraine's state and state-guaranteed debt has increased by almost 11 months since the beginning of the year, to 9.35 years. 

In August 2023, the Ministry of Finance held 15 auctions for the placement of domestic government bonds, raising UAH 27.25 billion to finance the State Budget.

As of 31.08.2023, the rollover ratio of market domestic government bonds was 133%, while the rollover ratio of hryvnia-denominated domestic government bonds was 148%, 106% in US dollars and 114% in euros.

Detailed information on the state and state-guaranteed debt of Ukraine in August 2023 and other periods is available on the official website of the Ministry of Finance at the link.