KIEV, March 11 - Ukraine's state direct and guaranteed debt will reach 12.9% of GDP by the end of 2008, the Finance Ministry forecasts.

"Ukraine's state debt is several times lower than the admissible maximum of 60%," Deputy Finance Minister Volodymyr Lytvyn said at a Ukrainian investment summit taking place in London on March 10-12.

According to him, in 2008 the direct state debt should shrink to 9.6% of GDP compared to 10.1% of GDP in 2007 and 12.3% in 2006.