The country’s direct foreign debt rose 0.34 percent to $8.614bn in May, and the guaranteed foreign debt increased 0.64 percent to $2.092bn. The domestic debt dropped 0.23 percent to $3.99bn.

As of May 31, Ukraine’s debt to international organizations (the World Bank, the European Bank for Reconstruction and Development and the European Union) was $2.461bn, against $2.468bn a month earlier. The debt to foreign countries amounted to $2.717bn. Ukraine’s largest debt is to Russia ($1.583bn). The rest of its foreign debt is commercial obligations, including $600m on 7-year bonds issued in 2004, $1bn – on 10-year bonds issued in 2003, $1.682bn – on 7-year amortization bonds issued in 2000, and $150.4m – on foreign bonds issued in 1995 to pay for Russian gas supplies.

In 2003, Ukraine issued $1bn in 10-year bonds with a 7.65 percent coupon rate. Interest rate was lower on 7-year bonds issued in March - 6.875 percent.

Last month, the Ukrainian Finance Ministry paid EUR 16.347m on euro-denominated government Eurobonds issued in 2000-2002, and $24.405m – on dollar-denominated Eurobonds. The bonds (10 percent interest on euro- denominated bonds and 11 percent – on dollar-denominated bonds) mature in 2007.

In 2000, Ukraine issued EUR 1.133bn and $1.1505bn in Eurobonds for the restructuring of its short term foreign debt. In 2002, it issued additional Eurobonds, and the bond debt rose to EUR 1.1677bn and $1.5876bn.