Ukraine's state debt could retain at 82% of GDP in 2017 - NBU

The total direct and guaranteed state debt of Ukraine in 2017 would remain at around 82% of GDP, and in 2018 it would decline to 80% of GDP, the National Bank of Ukraine (NBU) has said in an inflation report posted on its website.

"After the capitalization of PrivatBank by the state at the end of 2016, quasi-fiscal risks significantly fell. In the forecast period quasi-fiscal needs of the banking sector and the Individuals Deposit Guarantee Fund will be small, while Naftogaz Ukrainy would not require support from the budget, as utilities tariffs were brought to the economically justifiable level," the central bank said.

The NBU predicts growth of consolidated deficit of the national budget in 2017 from UAH 54.7 billion to UAH 78.7 billion or from 2.3% of GDP to 2.9% of GDP. The wider deficit of the public administration sector will expand from UAH 55 billion to UAH 81 billion or from 2.3% of GDP to 3% of GDP.

The central bank said in 2018 these deficits could narrow to 2.8% of GDP and 2.9% of GDP respectively.