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Ukraine’s state debt in November hits record high of over UAH 1 tln
Ukraine’s total (direct and guaranteed) state debt in November, in dollar equivalent fell by 5%, or $3.66 billion, to $69.34 billion, mostly due to the hryvnia’s devaluation, the Ukrainian Finance Ministry reported on its website.
According to the report, in hryvnia, the aggregate state debt last month grew by 9.8%, or by UAH 92.57 billion, to a record high of UAH 1.379 trillion.
The correlation of state debt denominated in U.S. dollars and hryvnia gives an estimate forex rate of UAH 14.97 per $1 as of the end of November against UAH 12.951 per $1 as of the end of October and UAH 7.993 per $1 as of end of 2013
In January-November the aggregate state debt decreased in dollar equivalent by 5.2%, or $3.77 billion, but in hryvnia it grew by 77.6% or by UAH 453.53 billion.
Total domestic debt in November shrank by 10.8%, or by $3.58 billion, to $29.58 billion, whereas total foreign debt fell by 0.2%, or $80 million to $39.76 billion, the Foreign Ministry said.
Since the beginning of the year, total domestic state debt fell by 16.8%, or $5.96 billion, whereas foreign debt grew by 5.8%, or $2.19 billion.
As reported, Ukraine’s public debt in 2013 in U.S. dollar terms grew by 13%, or $8.434 billion, and in relation to GDP – from 37.4% of GDP to 40.9% of GDP.
According to government estimates, the fall of real GDP in Ukraine in 2014 will be 7%, however, due to the acceleration of inflation to 25.3%, nominal GDP will increase to UAH 1.525 trillion.
The International Monetary Fund in the updated Stand-By Arrangement forecasts the increase in Ukraine’s gross public debt in this year from 40.9% of GDP to 67.6% of GDP due to the devaluation of the national currency and the need for further government support for Naftogaz Ukrainy and banks.
World Bank Finances Expansion of Power Transmission in Ukraine
Friday, 26 December 2014
The FINANCIAL — The World Bank’s Board of Executive Directors approved a US$378.425 million loan for the Second Power Transmission Project to improve the reliability of the power transmission system and support the implementation of the Wholesale Electricity Market in Ukraine. With this new project, the Bank is stepping up its support for the country’s energy sector reforms, according to the World Bank Group.
The new investment will support efforts to develop plans for renewable power integration, applying smart grid solutions at power transmission. It will also support the implementation of the Wholesale Electricity Market and Balancing Market mechanisms and enhance electricity market competitiveness by aligning the Ukrainian network with the European Network of Transmission System Operators for Electricity. This will help to strengthen not only national, but also regional energy security.
The new project will help the national energy company Ukrenergo to design and implement high-priority transmission system rehabilitation measures and upgrades, increasing the system’s reliability. It aims to make substations more efficient through reducing the number of outages, while strengthening electricity market performance. This will be done across the Central and Northern power systems, the country’s two major regional networks, covering almost one-third of Ukrainians who will get more stable electricity supplies, according to the World Bank Group.
The project includes a US$48.425 million loan provided by the Clean Technology Fund (CTF), which will be used to assist Ukrenergo in the design and installation of the next generation of modern communications, grid management, and control systems, which will enable large-scale integration of wind and solar energy resources and improve management and operation of the transmission network.
In addition, the project provides US$2.5 million of institutional support to Ukraine’s Ministry of Energy and Coal Industry for the implementation of energy sector reforms in line with its commitments within the Energy Community and the EU Association Agreement, according to the World Bank Group.