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to-be-refinanced part $2bn will be raised as untied credit resources, which we are going to get abroad by floating the relevant bonds for a broad spectrum of investors," he said.
The Russian government has allocate $630mn loan to Minsk in 2019, less than the $1bn that Minsk was holding out for, Belarus’ Finance Minister Maksim Yеrmalovich said on November 12. “The parties are yet to draw up an agreement. This will be done next year. No new decisions are expected from both the sides,” state-run news agency BelTA quotes him saying. Belarus has said that it will not issue any new debt on the international capital markets this year after a series of successful Eurobond issues in the last two years. However, it still needs to refinance some 75% of the debt coming due this year, which will be financed through a combination of domestic currency denominated issues and Russian and Chinese loans. The Belarusian authorities asked the Kremlin for a $1bn state loan to refinance part of the country’s external $3.6bn of debt that comes due next year. Belarusian Prime Minister Syarhei Rumas said that the Russia offered to refinance only those repayments that were due to go to Russia in 2019. “The Belarusian side is seeking to expand the loan a little bit and asking Russia to refinance repayments to be made to the Eurasian Fund for Stabilization and Development,” he added, referring to the pan Eurasia Economic Union (EEU) organisation, a sort of IMF of the east. Russian Finance Minister Anton Siluanov said the loan will be provided to refinance the $630mn loan allocated to Belarus earlier, without specifying if these were Russian loans.
Belarus tapped the international debt market on February 21 for the first time this year with a new $600mn issue of 12-year Eurobond with 6.2% coupon following January's drop in the nation's foreign exchange reserves by $838mn, or 11.5% month-on-month, to $6.477bn.
The Finance Ministry of Belarus hopes to borrow $1bn in international capital markets annually , First Deputy Finance Minister Maksim Yermolovich said. “We will have to refinance the debt of about $1bn annually. The focused efforts to build relationships and to gain access to the international borrowing markets led to positive results. Belarus has gained a guaranteed access to the markets of Europe, the United States and Russia. China will be on this list soon. The Finance Ministry plans to achieve an annual budget surplus of $400 to $700mn in the midterm in order to repay the national debt.
In 2018, Belarus will pay about $3.8bn of debt . Maksim Yermolovich stated that much is done in the country to keep the level of the public debt below 45% of GDP. In 2017, the Finance Ministry implemented an ambitious loan program, including $1.4bn earned from floating Eurobonds, as a result, the national debt increased by $3bn, which created a reserve for the unconditional fulfillment of obligations in 2018. By the end of 2017, Belarus' foreign currency reserves amounted to $7.3bn.
Belarus intends to borrow $500mn from the international capital markets in 2019 to maintain its gold and foreign exchange reserves as well as refinance existing debt, the Belarusian Finance Minister Maksim Yermolovich said reports BelTA. “As part of the next year's state budget the Finance Ministry intends to raise extra $500mn to beef up the gold and foreign exchange reserves. The Finance Ministry is technically ready to raise the funds but the decision will depend on the state of foreign markets, on whether the government will be comfortable with the borrowing terms,” said Yermolovich. “We don't need money that much in 2019. It will be a convenient time for reaching the markets we have not been present on yet,” he added. In general Belarus plans to raise a total of $1.5bn on foreign markets every year, but in the short-term the government is committed to bring down the level of national debt.
23 BELARUS Country Report December 2018 www.intellinews.com