The underperformance in respect to external borrowings, amounting to UAH 56 mln, envisaged for Q1, and at least partial non-replacement of them by internal borrowings became the main reason for decreasing the hryvnia liquidity, acting Minister of Finance of Ukraine Oksana Markarova reported in comments to HB.

Markarova also noted that other factors of low liquidity may include the decrease of proceeds from privatization and the deferral of most dividends by the National Joint Stock Company Naftogaz for the second half of the year.

“Since I became the acting minister, we started actively working on the increase of borrowing on the internal market as well as on the additional funding sources, such as the early repayment from the Deposit Insurance Fund etc. In addition, amid continuing the performance of the state budget on the revenues, the additional injection in liquidity will be the part of NBU profit, the profit of Naftogaz NJSC, amounting to USD 17.2 bln, and the performance of local budgets above target”, she added.

It should be reminded that in early August 2018, the balance of funds on the Single Treasury Account decreased to the level of December 2013 and was UAH 1.99 bln. The decrease per month amounted to UAH 7.4 bln.

It is noteworthy that one year ago, there were 22times more funds on the Single Treasury Account – UAH 44 bln; in July 2017, they decreased by more than UAH 1 bln.

It should be reminded that in late July, the State Treasury gave the loans to the Pension Fund to cover the cash gap between the revenues from the unified social tax and pension funding in July.

Later Markarova stated that the Ministry of Finance keeps control of the low level of hryvnia balances on the Single Treasury Account.