The current account deficit of the balance of payments of Ukraine in October 2016, decreased to 234 million USD, which is 1.8 times better than in October 2015. This is stated in the message published on the website of the National Bank of Ukraine (NBU).
“A major factor in reducing the deficit was the return of the account balance of primary incomes to positive values after the implementation of scheduled interest payments on the restructured Eurobonds in September”, – stated in the message.
It is emphasized that the export and import of goods in seasonally adjusted terms remained largely unchanged compared with September.
In particular, the negative foreign trade balance in October improved compared with September, only 9.5% to 546 million. whereas a negative balance of trade in goods grew by 3.3% to 667 million dollars. Exports of goods increased by 4.2% to 3,02 billion dollars, while imports – by 4%, to 3.69 billion.
The national Bank notes that in October traditionally increased the export of grain, primarily corn. Also increased sugar exports by entering new markets and increased supplies of gas turbine engines in India and Russia.
“However, due to temporary difficulties with supply of raw materials and carrying out major overhauls of individual steel plants in October reduced the export of metallurgical products. Also less than in the previous month were exports of oil excluding the seasonal factor”, – said the NBU.
According to the Bank, continued its gradual decline in imports for investment purposes. In particular, the second consecutive month there was a reduction in imports of machinery for agricultural purposes due to difficulties with the registration of agricultural machinery and its active purchases in previous periods.
The NBU also notes that net income in the financial account in October was 311 million. 4.4 times less than in September.
“The determining factor for the dynamics of the financial account, as in September, remained the reduction of currency outside banks. Another influential factor was the net inflow of debt capital. Unlike previous months, he did in both the real and banking sector”, – said the NBU.
It also added that the repayment of government bonds denominated in foreign currency owned by non-residents led to a reduction in liabilities of the public sector on 298 million dollars.
News: NBU: Ukraine first time in five years the balance of payments closed with a surplus
The national Bank noted that with the completion of the programme of recapitalization of the largest banks with foreign capital inflow of foreign direct investment fell from 444 million us dollars. to 45 million. which was directed exclusively to the real sector of the economy.
In General, in October the balance of payments was reduced with a surplus of 91 million. that is 5.2 times less than in September 2016 and 2.5 times – than in October 2015.
The NBU also points out that only in the first 10 months of this year, the current account balance was negative in the amount of $ 2.5 billion., that is 8.4 times less than in 10 months of last year.
“However, the current account deficit was offset by net borrowings in the financial account”, – stated in the message Bank.
As a result, the consolidated balance of payments for January to October 2016 was positive and amounted to about $ 1 billion., that is 4.8 times better than the January-October 2015.
Note, in the world Bank believe that Ukraine in 2015-2018 to cover the deficit need another $ 40 billion. external inflows.