The balance of payments in the first quarter reduced surplus

Платежный баланс в первом квартале сведен с профицитом

The surplus was achieved thanks to income on the financial account

In March 2019, a positive balance of payments of Ukraine amounted to 0.7 billion for the first quarter of 0.3 billion dollars. This is stated in the “Macroeconomic and monetary review” of the National Bank (April 2019).

As noted in the review, in March the current account deficit expected to have widened in comparison with February (to 0.7 billion) against scheduled interest payments on the restructured bonds. For the first three months, the deficit amounted to 0.4 billion dollars.

At the same time negative balance of trade in goods in March narrowed to $ 0.8 billion. Exports of goods grew at a steady pace (7,1% yoy) due to the significant volume of supply of grain crops and the resumption of growth of exports of some steel products. Import growth slowed (to 6.7% y/y) in connection with the rapid reduction in the growth rate of imports of land transport vehicles on the background of the completion in February of the preferential customs clearance of cars with foreign registration and further reduce energy imports as for the expense of prices and physical volumes.

Revenues in the financial account in March ($1.3 billion) significantly exceeded the current account deficit and provided the public sector. Among the sources of capital inflows to the public sector to obtain financing under the guarantees of the world Bank (USD 0.6 billion), the placement of public debt securities (0.4 billion) and investments of non-residents in UAH government bonds (0.3 billion dollars), said the NBU.

Clean engagement of the private sector was close to zero due to significant payments on Eurobonds of the banking and real sectors, the survey says.