Page 16 - BELRptJune18

6.1.2 Budget dynamics - funding, privatization
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.
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
As of 1 May 2018 Belarus' external state debt totalled $16.4bn, down by $315.6mn or 1.9% from the beginning of the year (taking into account differences in currency exchange rates), BelTA learned from the Belarusian Finance Ministry.
In January-April 2018 the Belarusian government borrowed $990.5mn abroad , including $600mn via eurobonds, $313.6mn from the Russian government and banks, $42.3mn from the International Bank for Reconstruction and Development (IBRD), $33.1mn from Chinese banks, and $1.5mn from the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB).
In January-April 2018 Belarus spent $1,235.1mn to repay the external state debt , including $800mn paid on eurobonds, $179.3mn to Chinese banks, $137.1mn to the Russian government, $88.3mn to the Eurasian Fund for Stabilization and Development (EFSD), $29.3mn to the International Bank for Reconstruction and Development, $0.7mn to the USA, and $0.4mn to the EBRD and NIB.
16 BELARUS Country Report June 2018 www.intellinews.com