The balance of payments deficit declined to $ 234 million.
In January-October 2016, the current account balance was negative and amounted to $ 2.5 billion.
In October 2016 the current account deficit of the balance of payments decreased to $ 234 million.
The National Bank notes that the deficit narrowed, primarily due to the return of the primary income account to positive values after planned interest payments on restructured bonds of external state borrowing in September.
In turn, exports and imports of goods remained largely unchanged compared to September. In October, grain exports, primarily corn, increased. Also, sugar exports increased, thanks to entering new sales markets, and supplies of gas turbine engines to India and Russia increased, the NBU reported.
Nevertheless, in October exports of metallurgical products decreased due to temporary difficulties with the supply of raw materials and capital repairs by individual metallurgical plants. Also, the export of oil decreased. In addition, the National Bank reported that in October imports of investment purposes, in particular, agricultural machinery, continued to decline.
Net income on the financial account in October amounted to $ 311 million. The dynamics of the financial account was mainly influenced by the reduction of cash foreign currency outside banks, as well as net inflow of debt capital. Government repayment of bonds of external state borrowing in foreign currency, which were owned by non-residents, led to a reduction in public sector liabilities by $ 298 million.
The NBU notes that after the completion of the programs of recapitalization of the largest banks with foreign capital, the inflow of direct foreign investments in the amount of $ 45 million was sent to the real sector of the economy. Thus, in October, the balance of payments was reduced to a surplus of $ 91 million.
In January-October 2016, the current account balance was negative and amounted to $ 2.5 billion. Nevertheless, the current account deficit was compensated by net borrowings on the financial account, as a result of which the balance of the consolidated balance of payments was positive and amounted to about $ 1 billion.
