NBU: Surplus of Ukraine's balance of payment almost nil in Aug

The surplus of Ukraine's consolidated balance of payment in August 2016 narrowed to $16 million compared to $110 million in the previous month, the National Bank of Ukraine (NBU) has reported.

The surplus of the balance of payments in January-August 2016 was $533 million, whereas the deficit of the current account of the balance of payment in January-August 2016 was estimated at $1.4 billion. It was covered by net inflows to the financial account by private sector.

The surplus of the balance of payment in August linked to a rise in the deficit of the current account to $414 million. Imports of goods grew more quickly than exports thanks to growth of supplies of energy.

The NBU said that the fall in the surplus was also related to net borrowing on the financial account worth $417 million. Foreign direct investment (FDI) was sent to the real economic sector.

Net FDI increase in August totaled $129 million ($291 million in July). Compared to the previous months 86.8% of the funds were sent to the real economic sector.

Off-bank cash in August almost halved to $310 million due to the hryvnia devaluation.

Rollover for long-term liabilities of the private sector in August grew to 81% (67% in July) due to the slow in the outflow of debt capital from the banking sector – to $115 million ($363 million in July). Debt capital worth $26 million flowed to the real economic sector ($164 million in July).

Liabilities of the public sector narrowed thanks to the payment of government domestic loan bonds to nonresidents ($175 million).

Ukraine's forex reserves almost did not change in August, being $14.1 billion as of September 1, 2016 to cover 3.6 months of future imports.