Ukraine goes to the medium-term strategy in the financial sector
The Cabinet of Ministers of Ukraine at its meeting on 5 June approved a Medium-term strategy of public debt management in the years 2019-2022. The relevant documents are at the disposal of RBC-Ukraine.
According to the document, the strategy will be realized in the context of macroeconomic stabilization. The government draw attention to the fact that the Ukrainian economy was on the path of sustainable economic growth with the support of international organizations, which provide loans on preferential terms.
According to the strategy, in the medium term, the main goal of Ukraine in the management of public debt is to raise loans at the lowest possible cost given the risks. In this regard, identified four main objectives of public debt management:
1. The increase in the share of public debt in national currency.
2. The extension of the average term to maturity and ensure an even repayment schedule of debt.
3. To attract long-term concessional financing.
4. The continued development of strong relations with the investors and further improve the policy of public debt management.
In addition, to determine a tentative plan of action for the current and next three years. It provides for the construction of the curve of government bonds in euros, the increase in placement of government bonds in local currency, including by increasing participation of international investors in the domestic market of Ukraine, as well as the continuation of placement of government bonds in US dollars. Under favorable market conditions may continue to conduct the active management operations of public debt through the purchase of government securities.