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Due to debt repayment, Ukraine’s international reserves decreased by 2.9% to $37.9B.

Ukrainian banks plan to ease lending for businesses and the public.

National central bank in Kyiv, Ukraine.

As noted by the National Bank, June’s dynamics were caused by the NBU’s currency interventions to cover the market’s currency deficit and smooth out exchange rate fluctuations and the country’s debt payments in foreign currency. However, the latter was partially compensated for with revenues from OVDP and international partners. The NBU’s net sale of currency in June amounted to $2.99​B (-2.7% compared to May). In total, Ukraine paid $444.5M for servicing the state debt in foreign currency:

  1. $315.7M – servicing and repayment of foreign currency bonds
  2. $73.6M – debt servicing and repayment to the World Bank
  3. $55.2M– to other international creditors
  4. $247.6M– IMF payments

At the same time, the government’s foreign currency accounts at the NBU received $2.43B: more than $2B from the EU within the Ukraine Facility, $407.3M from the placement of currency bonds, and $3M from the World Bank.

 

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