KIEV: The surplus of Ukraine’s consolidated balance of payment in September 2016 expanded to $474 million compared to $16 million in the previous month, the National Bank of Ukraine (NBU) has reported. The surplus of the balance of payments in January-September 2016 was $1 million, whereas the deficit of the current account of the balance of payment in January-September 2016 was estimated at $2.3 billion. It was covered by net inflows to the financial account.
The surplus of the balance of payment in August linked to a rise in the deficit of the current account to $414 million. Imports of goods grew more quickly than exports thanks to growth of supplies of energy. The NBU said that in September the deficit of the current account almost doubled compared to the previous month, to $875 million. This is linked to scheduled payments of coupons under restructured eurobonds by the government and a decline in exports of foods in annual and monthly terms.
The central bank said that with expansion of exports of grain in kind its value fell due to a fall of global grain prices. Exports of metal products also decreased due to a fall in steel prices. Exports of vegetable oil and fats grew thanks to a good harvest of sunflower seeds. Growth of imports of goods slowed in September due to the low growth pace of agricultural machinery imports in annual terms. Net inflows to the financial account in September totaled $1.3 billion (a 2.6-fold rise on August). The NBU said that this was recorded thanks to borrowing by the public sector – the placement of U.S. secured $1 billion eurobonds after the successful second revision of the EFF program financed by the International Monetary Fund (IMF).
Net FDI increased in September to $444 million ($129 million in August), including $264 million to the real economic sector. Some $180 million was sent to the banking sector to additionally capitalize banks with foreign capital. Off-bank cash in September grew to $474 million ($310 million in August). Net outflow of debt capital from the real economic and banking sectors grew to $480 million and $452 million respectively. This links to the large volumes of paying long-term credits, while borrowing by the private sector was small.
