Government approves 2019-2022 Midterm Strategy for the State Debt Management

On June 5 the Cabinet of Ministers of Ukraine approved Medium Term Strategy for the State Debt Management for 2019-2022. The document underlies effective debt policy implementation and determines key objectives, tasks and measures for state debt management.

The Strategy was developed in accordance with the aims of the budget policy and macroeconomic forecasts. It is targeted at a gradual achievement of debt-to-GDP ratio of no more than 43% by the end of 2022.

‘In 2016 we`ve faced the highest debt-to-GDP ratio. We have managed to reduce it from 69,2% to 52,3% by the end of 2018. Being one of the key indicators for investors, it shows our ability to return debts. It also demonstrates the reduction of the debt ratios within the state budget,’ says Minister of Finance of Ukraine Oksana Markarova. ‘Such a positive trend was made possible due to the improvement of macro-economic environment and coherent actions of the Government. The Midterm Strategy for the State Debt Management will remain such a trend.’

The Strategy includes the following steps:

1. Increasing the proportion of the state debt in the domestic currency.
2. Attracting foreign investors to invest in domestic government bonds nominated in national currency.
3. Extension of an average term of government securities repayment and ensuring a uniform schedule of repayment of the state debt.
4. Implementation of operations for active state debt management in order to reduce a peak load on the budget and stimulate demand for government securities.
5. Ensuring full access of Ukraine to the international capital market.
6. Further improvement of public debt management policy, through the establishment and effective functioning of the State Debt Management Agency with regard to the best international practices.
7. Increasing long-term concessional financing by expanding cooperation with international financial institutions (in particular, the World Bank, IMF, EBRD, EIB) and partner countries.

The implementation of the Medium Term Strategy for the State Debt Management for 2019-2022 will also allow to increase the level of transparency and efficiency of the state debt management policy.