Public debt increased by another USD2.0bn to USD82.4bn in July, according to figures published by the FinMin. This is a new record. Public debt grew by USD2.0bn also in June, and it grew by USD4.1bn over January-July. Debt is likely to decrease in September, when this year’s peak of payments to foreign creditors is expected. Direct public debt jumped USD2.2bn to USD72.2bn in July, according to the FinMin. We recall that in line with the government’s mid-term debt strategy, direct public debt is expected to shrink to 52.0% of GDP at end-2019 from 52.3% at end-2018. The central bank expects GDP to grow by 3% this year.
Public debt grew at the expense of domestic direct debt in July, up USD2.4bn to USD32.3bn, a new record, as the FinMin boosted domestic bond sales. At the same time, foreign direct debt shrank USD0.2bn to USD39.9bn. Foreign guaranteed debt also shrank by USD0.2bn, to USD9.7bn, and domestic guaranteed debt stayed at USD0.4bn.
As far as the currency structure of public debt is concerned, the share of USD-denominated debt fell further to 40.0% from 40.9% over July. It has been shrinking for several consecutive months. The EUR share fell to 10.1% in July after growing to 10.5% in June. Conversely, the UAH share jumped to 34.5% from 32.5%.