Page 27 - BELRptSept18

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 $16.4bn as of June 1, up by $332mn or 2% from early January, according to the Finance Ministry in Minsk.
The result was mainly attributed to a $600mn placement of a 12-year Eurobond with a 6.2% coupon. Belarus also borrowed $377mn from Russian banks and the government.
The government in Minsk also borrowed $33.1mn from Chinese banks; $52.7mn from the International Bank for Reconstruction and Development (IBRD); and $2.1mn from the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB).
According to official data, the nation's international reserves increased by $43.5mn, or 0.6% m/m to $7bn in April.
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.
Who is buying Belarusian eurobonds?
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
27 BELARUS Country Report September 2018 www.intellinews.com