This article discusses the amount of #Ukraine’s international reserves that has shown significant growth by the end of 2015, thus evidencing that the #economy of Ukraine is gradually stabilizing, which is a good sign for the potential #investors.
Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.
In 2015, Ukraine’s international reserves increased by 77% or USD 5.767 billion and amounted to USD 13.3 billion as of 1 January 2016. In December 2015 alone the reserves increased by more than USD 150 million.
As reported, the main source of increase of international reserves of Ukraine was the monetary auctions conducted by the National Bank of Ukraine. In particular, in December 2015 net income from such auctions amounted to USD 91.4 million. In addition, in December 2015 Ukraine received USD 88.7 million under swap transactions with Chinese renminbi and USD 11.3 million from the European Commission.
In December 2015, Ukraine spent almost USD 370 million on servicing its debts, including payments of USD 173.5 million to the International Monetary Fund, USD 196.4 million for servicing other debts in foreign currency and USD 162 million for repayment and servicing sovereign securities.
We note that the amount of Ukraine’s international reserves hit its lowest and amounted to only USD 5.625 billion. The country was on the brink of default in early and mid 2015, but managed to gradually restore its reserves, mainly through loans provided by the International Monetary Fund, World Bank and affiliated financing. In 2015, Ukraine received two out of total four tranches from the International Monetary Fund under the Extended Fund Facility Arrangement, which was approved in March 2015 and provides for an overall financing of USD 17.5 billion over two years. The third and fourth tranches of funds from the International Monetary Fund is expected to be received by Ukraine in the first half of 2016. However, while the third tranche was initially scheduled to take place in December 2015, no exact dates of such tranches were announced by the International Monetary Fund.