Ukraine planning to borrow $11 bln in 2012
Repayment of internal debt will make up only USD 1.9 billion
KYIV, September 21, 2011 (UBO) – The government draft state budget 2012, submitted for consideration of the Parliament at the end of last week, provides for USD 11.3 billion of new borrowings next year, which only slightly up against the planned index for the current year, UkrInform reported. In compliance with the draft law, for repayment of the state debt in 2012, USD 7.3 billion should be sent in 2012 (against USD 7.8 billion this year), at the same time, 74 percent of this amount falls on internal debt.
Repayment of internal debt will make up only USD 1.9 billion, including USD 0.9 billion of IMF credits (another USD 2.6 billion should be repaid to the Fund from the NBU reserves). According to the renewed schedule of debt payments, a peak of payments to the amount USD 4.5 billion will fall on 2013, mainly due to maturity on IMFA credits.
As Olena Bilan, chief economist of Dragon Capital said, without taking into consideration of the government bonds issue, at the expense of which the government intends to attract USD 2.2 billion (USD 1.5 billion for recapitalization of Naftogaz of Ukraine, USD 0.6 billion - for support of the Agrarian Fund and USD 0.1 billion - for recapitalization of state-run energy companies), the planned needs of the state on internal and foreign borrowings in 2012 will make up USD 9.1 billion (-16 percent year/year).
However, the published schedule of repayments on foreign debts does not include a credit from Russian VTB Capital to the amount of USD 2 billion, which should be repaid in December 2011, but, most likely, will be prolonged (partially or fully) till mid-2012.