21.06.2012
Belarus’ external debt servicing doubles to $1.6bn in 2012
MINSK, 21 June (BelTA) - Belarus will have to pay $1.6 billion to service the external debt in 2012, twice as much as last year, Belarus’ Finance Minister Andrei Kharkovets said when speaking in the House of Representatives of the National Assembly of the Republic of Belarus, BelTA learnt.
“Government recent debt management strategy based on active borrowing mainly to maintain the level of the country’s international reserves has led to a number of big problems,” the Finance Minister said. He emphasized that Belarus’ external debt-to-GDP ratio is approaching the threshold point. Payments on the external debt are expected to double as against 2011 to a total of $1.6 billion in 2012.
Payments on domestic guarantees are also expected to be significant. Government guarantee limit on credits attracted by Belarusian banks is Br20 trillion in 2012. The current amount is already at Br17.2 trillion and might exceed the limit already in 2012, Andrei Kharkovets assumed.
The share of fulfilled guarantees on guaranteed credits went up from 2.2% in 2009 to 13% in 2011.
Taking all this into account, Belarus’ external debt management strategy for 2012 and beyond will be based on the 2011 practices. This means unconditional fulfillment of debt liabilities, and attracting new foreign loans exclusively to refinance the accumulated debt and implement large investment projects, Andrei Kharkovets underscored.
“Government recent debt management strategy based on active borrowing mainly to maintain the level of the country’s international reserves has led to a number of big problems,” the Finance Minister said. He emphasized that Belarus’ external debt-to-GDP ratio is approaching the threshold point. Payments on the external debt are expected to double as against 2011 to a total of $1.6 billion in 2012.
Payments on domestic guarantees are also expected to be significant. Government guarantee limit on credits attracted by Belarusian banks is Br20 trillion in 2012. The current amount is already at Br17.2 trillion and might exceed the limit already in 2012, Andrei Kharkovets assumed.
The share of fulfilled guarantees on guaranteed credits went up from 2.2% in 2009 to 13% in 2011.
Taking all this into account, Belarus’ external debt management strategy for 2012 and beyond will be based on the 2011 practices. This means unconditional fulfillment of debt liabilities, and attracting new foreign loans exclusively to refinance the accumulated debt and implement large investment projects, Andrei Kharkovets underscored.