MINSK, 18 December (BelTA) – Belarus intends to borrow $1.2 billion on the home market and foreign ones in 2018. The plans were released by Belarusian Finance Minister Vladimir Amarin as he presented a package of the next year's budget documents in the parliament on 18 December, BelTA has learned.
According to the source, among other things Belarus intends to get the sixth tranche and the seventh one of the Eurasian Fund for Stabilization and Development loan. The Finance Ministry will also float eurobonds to the tune of $600 million on foreign markets. As much as $400 million will be borrowed on the home market. “We've raised the same sum this year,” said the Belarusian finance minister.
Vladimir Amarin specified that Belarus' debt obligations for the year 2018 are estimated at $3.8 billion. Belarus will spend $2.5 billion on repaying the principal debt and over $1.2 billion on servicing the debt. “The state debt will be fully serviced using general revenues of the state budget. Non-debt sources will be used to repay the principal debt in foreign currency. Those are export customs duties on oil products ($486.5 million) as well as foreign currency leftovers in the central state budget ($850 million), which were generated when Belarus floated eurobonds in 2017,” explained the official.
Belarus has fully honored its debt commitments this year. “We will transfer the final December payments — about $200 million — as planned. This year we've borrowed $1.4 billion via eurobonds, including in order to honor our commitments this year and commitments as part of the second tranche of eurobonds in January 2018 — $800 million,” said the official.
The Belarusian finance minister reminded that the draft state budget for 2018 suggests limiting the domestic state debt to Br10 billion. Belarus' foreign state debt is supposed to be limited to $19.6 billion. “If the specified limits are honored, then economic security indicators with regard to the state debt will be fulfilled as of late 2018. The ratio of the state debt to the GDP will not exceed 44.5% while the debt of the state administration sector will not exceed 46.9%. Meanwhile, the economic security threshold figures are 45% and 50% respectively,” said Vladimir Amarin.More about Economy