Page 37 - UKRRptOct21

According to calculations, the budget of Kyiv in 2022 will amount to about UAH65bn, said mayor of the capital Vitali Klitschko. "As for the city's budget, it will be slightly more than this year. Despite the shortfall due to the pandemic, the estimate for 2022 will amount to approximately UAH65bn," the press service of Kyiv City State Administration quoted Klitschko as saying. According to the mayor of the capital, almost a third of the budget will be spent on education. A significant part of the funds will also be allocated for medicine, transport, construction and repair of roads.
6.1.3 Budget dynamics - funding
The government borrowing plan for 2022, submitted by the government to the Verkhovna Rada along with the draft state budget, involves the issue of eurobonds with a maturity of 5-15 years for the equivalent of $1.5bn, or UAH42.9bn.
According to the document, the weighted average interest rate on them is about 7.5%.
In addition, the government plans to raise the equivalent of almost $2.9bn, or UAH82.7bn from the International Monetary Fund, within the framework of external borrowings to finance the deficit of the general fund in 2022, without specifying whether it is a new program, the extended Stand-By Arrangement, or the use of SDR1.93bn ($2.74bn) received in August this year under the new SDR allocation.
In total, due to external borrowings, it is planned to attract UAH125.62bn to finance the state budget, while at the expense of internal borrowings - UAH419.96bn.
In particular, the government intends to place the longest, ten-year, government domestic loan bonds for UAH35bn, seven-year bonds - for almost UAH36bn, three-five-year bonds - for UAH157.1bn (about UAH50bn each year).
The plan for the issue of two-year securities is UAH85.6bn, one-year - UAH66.3bn and short -, six- and three-month bonds - UAH22bn and UAH18bn, respectively.
Payments for the repayment of external debt next year, according to the government, will amount to UAH72.4bn, internal - UAH321bn, for servicing - UAH181.4bn.
As reported, Ukraine at the end of April this year placed new eurobonds for $1.25bn with maturity in 2029 and a rate of 6.875% per annum. In the second half of July, Ukraine added $500mn of these securities at 6.30%.
The US Congress has proposed to increase the amount of security assistance provided to Ukraine by $50 million. This will increase the total to $300 million, according to the draft US defense budget for 2022. The Ambassador of Ukraine to the United States, Oksana Markarova, said that the draft budget should be supported by both chambers of the US Congress (open4business).
37 UKRAINE Country Report October 2021 www.intellinews.com