• Українською
  • Government approves the Medium Term Strategy for State Debt Management
    Ministry of Finance of Ukraine, posted 22 August 2018 12:21

    On August 22, the Government approved a draft resolution of the  Cabinet of Ministers of Ukraine on the Approval of the Medium Term  Strategy for the State Debt Management for 2018-2020.

    “The  approval of the updated Strategy and its implementation will not only  reduce the level of state debt and increase the efficiency of its  management but also improve predictability of trends in the development  of public finances in Ukraine and increase the level of trust in our  country among Ukrainian and international investors,” says Acting  Minister of Finance Oksana Markarova.

    For  the first time since 2011, the debt-to-GDP ratio in 2017 decreased and  began to approach the "safe" value of 60%, as defined by the Budget Code  of Ukraine. This was possible due to the improvement of macroeconomic  indicators and the concerted action of the authorities regarding fiscal  consolidation, monetary policy and implementation of reforms.

    The  Strategy identifies the task for the Ministry of Finance to reduce debt  to 60% in 2018, 52% in 2019 and 49% in 2020. It also sets qualitative  goals that will not only reduce the debt-to-GDP level but also improve  its structure, and reduce the current risks. 

    The  Strategy presents an indicative action plan for the next two years,  which includes, inter alia, the possibility of issuance of government  bonds in euros and other currencies with which the Ukrainian hryvnia  does not correlate well, issuance of government bonds in hryvnias for  international investors, encouraging deeper cooperation with  international financial institutions and foreign governments on  preferential financing. 

    Other  measures within the Strategy are aimed at strengthening relations with  investors, attracting international investors to the domestic market, as  well as the improvement of country`s rating as a borrower. Efforts to  strengthen institutional capacity will result in the creation of the  Debt Management Agency in line with best international practices. 

    “The  debt management strategy is an integral part of the comprehensive  Public Finance Management Strategy. The implementation of all of its  elements, in particular the introduction of medium-term budgeting,  expenditure surveys, fiscal risk control and tax and customs reform,  will allow us to accelerate the growth of the economy amidst sustained  macroeconomic stability, increase the level of investments and, as a  result, improve the welfare of our citizens”, says Oksana Markarova.