On December 1, 2017, the Government approved the Mid-term strategy for public debt management for 2017-2019.
What’s it about?
The goal of the Strategy is to identify the key objectives for public debt management, tasks and measures needed to achieve them as well as to set target values for public debt management in the mid-term run.
The Strategy takes into account forecasts and objectives of the budget policy and is aimed to achieve the set targets in the end 2017, 2018 and 2019 accordingly which refer to the correlation between the public debt and the GDP which shall not exceed 66%, 62% and 58% respectively.
The key measures planned for the implementation of the Strategy are as follows:
- increase of the share of domestic bonds in the overall structure of the public debt;
- regular placement of a wide range of state bonds with different maturity terms in line with the existing demand, maintaining a permanent dialogue with the market participants;
- prolongation of the average maturity term of state bonds;
- further issue of baseline financial tools to reach the volume needed to develop a baseline yield curve and to ensure the liquidity of such tools;
- ensuring full-scale access of Ukraine to the international capital market;
- active public debt management aimed to reduce peak load on the state budget and to stimulate demand for state bonds;
- extending cooperation with international financial organizations, especially with the World Bank, International Monetary Fund, European Bank for Reconstruction and Development, European Investment Bank.
What is the benefit?
The implementation of the Strategy shall contribute to a higher transparency in the public debt management policy as well as increase the overall effectiveness of the public debt management.