State Budget 2020: The Actual State Budget Deficit Amounted to UAH 217.6 billion (5.2% of GDP)

In the year 2020, the government managed to achieve the budget indicators within the limits provided by the state budget law. The ministry has kept the state budget deficit within the limit. The actual state budget deficit 2020 is UAH 217.6 billion or 5.2% of GDP, which is UAH 81 billion less than planned.

The Ministry of Finance managed to attract UAH 382.3 billion to finance the budget through the placement of domestic government bonds. At the same time, the weighted average interest rate on the placed government bonds was 7.8% per annum and decreased by 5.2 p.p. compared to 2019.

Despite the challenges posed by the COVID-19 pandemic, the Ministry of Finance restored effective interaction with international financial organizations and partner countries. From them, the state budget received UAH 98.9 billion (USD 2.1 billion - the first tranche from the IMF under the Stand-by program, EUR 1.1 billion was provided in macro-financial assistance from the EU), while in the year 2019 it was UAH 1.1 billion.

The Ministry of Finance actively worked with international investors, not only by issuing Eurobonds (the equivalent of UAH 115 billion compared to UAH 39 billion in 2019) but also by conducting liability management operations with the Eurobonds and the GDP warrants, which were positively evaluated by the international community. In 2020 the International magazine GlobalMarkets, which annually covers the Annual Meeting of the IMF and the World Bank, awarded Ukraine in the category "Best Public Debt Management Office in Central and Eastern Europe".