OREANDA-NEWS. October 1, 2009.The Finance Ministry said yesterday that total public debt rose 5.6% to USD 35.1 bln in August, according to Interfax. Since the beginning of the year, the public debt load is up 42.7%. Mykyta Mykhaylychenko: The current level of total state debt constitutes some 30% of GDP. The increase in direct public debt is 50% from the issuance of domestic t-bills, which were bought up the central bank (another 50% came from borrowing from the IMF). Although currently such direct financing by the NBU does not create significant inflationary pressure due to weak domestic demand, in the future the government will have to find ways to reduce domestic debt to keep inflation under control and avoid upward pressure on domestic interest rates. Public debt up 5.6% in August

The Finance Ministry said yesterday that total public debt rose 5.6% to USD 35.1 bln in August, according to Interfax. Since the beginning of the year, the public debt load is up 42.7%.

Concorde Capital: The current level of total state debt constitutes some 30% of GDP. The increase in direct public debt is 50% from the issuance of domestic t-bills, which were bought up the central bank (another 50% came from borrowing from the IMF). Although currently such direct financing by the NBU does not create significant inflationary pressure due to weak domestic demand, in the future the government will have to find ways to reduce domestic debt to keep inflation under control and avoid upward pressure on domestic interest rates.

Concorde Capital is a full service investment bank operating on the Ukrainian, Russian and CIS markets. In 2007 Concorde Capital’s analytical team was recognized as the Top Team covering Ukraine by Thomson Extel's Pan European Survey. Senior Analyst Alexander Paraschiy was recognized as the Leading Pan-European Investment Analyst – European Emerging Markets. Concorde Capital is a leader when it comes to private placements and M&A deals. Concorde Capital’s sale of a stake in Electron Bank to Volksbank International AG was named the Best Ukrainian M&A deal of the year 2007 by the Adam Smith Institute.