Page 26 - BELRptNov18

economy, due to expire in 2020, as well as structural economic reforms, according to Yermolovich. In 2017, the Belarusian authorities failed to secure a new IMF loan due to the fat that the country's authoritarian president has refused to implement badly needed economic reforms, specifically, related to the privatisation of state-owned companies and utilities tariffs reform.
6.2 Debt
Source: CEIC
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
The external state debt of Belarus totalled $16.5bn as of October 1, down by $83mn or 1.1% from early January, according to the Finance Ministry in Minsk. In January-September, Minsk borrowed $1.718bn abroad, including, a $600mn placement of a 12-year Eurobond with a 6.2% coupon. Belarus also borrowed $669mn from Russian banks and the government.
The government in Minsk also borrowed $326mn from Chinese banks; $120mn from the International Bank for Reconstruction and Development (IBRD); and $4mn from the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB).
The Belarusian Finance Ministry said recently that it 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.
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.
According to the Fitch rating agency, foreign currency debt amortisation and interest payments will remain high, averaging $3.4bn in 2019-2020.
Sustained reduction in refinancing risks will depend on continued progress on diversifying external sources of financing, refinancing opportunities of bilateral debt with Russia and the pace of local market development. The government is working towards accessing the ruble and Chinese yuan markets in the near term, Fitch said in its recent statement.
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
26 BELARUS Country Report November 2018 www.intellinews.com