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KIEV, Oct 1 (Reuters) - Ukraine's foreign currency reserves will amount to about $28 billion by the end of the year, which will be enough to cover all debt obligations, President Viktor Yushchenko said on Thursday.
The central bank has been spending on average $1 billion a month since the start of the year on trying to stem the weakness of the hryvnia currency which on Thursday traded at 8.35-8.38/ $.
Reserves stood at $31.5 billion at the end of last year and have been since propped up by over $10 billion received from a bailout from the International Monetary Fund. "I want to say that despite all the analysts' statements in the press about whether Ukraine has enough resources, assets, to meet its obligations -- I want to say that there is no doubt about that," Yushchenko told an economic forum.
Yushchenko's comments come just as Fitch ratings agency declared a $500 million Eurobond of state-owned energy firm, Naftogaz, in restricted default. [ID:nL1478239]
The company, which in recent years had been buying increasingly expensive Russian gas but selling it domestically at lower prices, wants to restructure its entire foreign debt through a new bond worth $1.65 billion.
Ukraine has repaid a 768 million Swiss franc bond in September and a $500 million Eurobond in August, easing its foreign debt burden. The central bank has been helping Naftogaz to pay for its monthly Russian gas supplies.
Analysts have said a close to balanced current account, as imports drop due to falling demand, will also bode well for the country's finances.
"This is not to say that in certain corporate sectors there will not be problems in meeting their own debt obligations. (But) I would like to say that the country has assets for those kind of transactions," Yushchenko said. (Reporting by Yuri Kulikov; writing by Sabina Zawadzki; Editing by Ron Askew)