Page 25 - BELRptNov18

The National Bank of Belarus (NBB) is going to raise up to $200mn via FX-currency denominated local bonds by the end of the year. In January-August, the nation's central bank already placed $550mn on the local debt market with the aim of support its dwindling international reserves. The cost of the NBB's forex borrowing on the domestic market has risen from 3.3% at the start of the year to 3.9%, the regulator said in a statement last week. Belarus’ foreign exchange reserves increased by $216mn, or 3.1% month-on-month, to $7.246bn in August, following a 2.9% m/m increase in July. The country’s external state debt totalled $16.5bn as of August 1, down by $179mn or 1.1% from early January. On September 22, President Alexander Lukashenko told an emergency government meeting that Minsk is also seeking to refinance a $1bn intergovernmental debt owed to Russia. The Belarusian authorities have urged Russia to restructure a $10bn loan provided for the construction of a nuclear power plant. Recently, Russia threatened to suspend the allocation of new tranches from the $2bn support package agreed between Minsk and the Russia-led Eurasian Fund for Stabilisation and Development (EFSD) in 2016, as well as suspend negotiations on a new $1bn intergovernmental loan. According to Fitch, foreign currency debt amortisation and interest payments will remain high, averaging $3.4bn in 2019-2020.
The Belarusian Finance Ministry is going to raise up to $370mn through the sale of bonds in the domestic market in 2019. In January-September, the finance ministry sold $281.8mn worth of bonds in the domestic market, BelaPAN news agency reported on October 22. Meanwhile, the National Bank of Belarus (NBB) said recently that the regulator is going to raise up to $200mn via FX-currency denominated local bonds by the end of the year. In January-August, the nation's central bank already placed $550mn on the local debt market with the aim of support its dwindling international reserves. The cost of the NBB's forex borrowing on the domestic market has risen from 3.3% at the start of the year to 3.9%, the regulator said in a statement. Belarus’ foreign exchange reserves declined by $320mn, or 4.4% month-on-month, to $$6.926bn in September The country’s external state debt totalled $16.5bn as of August 1, down by $179mn or 1.1% from early January.
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 will consider the possibility of the new talks with the International Monetary Fund (IMF) about a new loan in 2020 after talks were suspended last year, Belarusian Finance Minister Maxim Yermolovich told Reuters on September 30. The country may succeed in resumed talks if it accomplishes its five-year programme for development of the state-run
25 BELARUS Country Report November 2018 www.intellinews.com