Page 20 - BELRptJuly18

6.2 Debt
Belarus - Gross external debt 2011 2012 2013 2014 2015 2016 Jan-Sep 2017
Gross external debt (USD bn) 131,628 133,602 145,982 160,653 152,642 152,327 115,518
Gross external debt (% GDP)
53.0 54.6 50.7 51.9 58.1 76.1 75.4
Source: CEIC
Near-term external financing risks have declined due to the pre-financing in 2017 of payments due in 2018 through market and official borrowing, and due to an increase in international reserves.
FX debt service is $2.6bn (not including Eurobond payment) in 2018,
which will be covered by a mix of multilateral financing, local market issuance, use of FX cash buffers and potentially a new international bond issuance. FX liquidity in the local market and FX government revenues derived from custom duties and trade of oil products further mitigate near-term financing risks.
Belarus's gross external financing requirement (current account deficit plus medium- and long-term amortisations) has declined to 101% of international reserves, from a previous peak of 223% in 2014.
Sustained reduction in refinancing risks will depend on continued progress on diversifying external financing sources , refinancing opportunities of Russian bilateral debt and development of the local market. The next Eurobond amortisation is not until 2023.
In January-May 2018, external state borrowings totalled $1.064bn , including $600mn in eurobonds, $377mn borrowed from the Russian government and banks, $52.7mn from the International Bank for Reconstruction and Development (IBRD), $33.1mn from Chinese banks, and $2.1mn from the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB). Since the beginning of the year, Belarus spent $1.309bn to repay the external debt, including $800mn in eurobonds, $213.4mn paid to Chinese banks, $174.6mn to the Russian government, $88.3mn to the Eurasian Fund for Stabilization and Development, $32.5mn to the IBRD, $0.7mn to the United States, and $0.4mn to the EBRD and the NIB. As of 1 June 2018, Belarus' government debt totalled Br42.5bn, up by Br292.5mn or 0.7% from 1 January 2018. The internal government debt amounted to Br9.3bn as of 1 June. Taking into account differences in currency exchange rates, the internal government debt grew by Br130.9mn or 1.4% from the beginning of the year. In January-May 2018, the Belarusian government sold $205mn worth of domestic government bonds nominated in foreign currencies to corporations and individuals and redeemed domestic government bonds nominated in foreign currencies and Belarusian rubles from corporation ($171.5mn) and individuals (Br23.1mn).
20 BELARUS Country Report July 2018 www.intellinews.com