/ / News
20.02.2013

Exposure of Belarus’ public debt to refinancing risk is low, Kharkovets says

MINSK, 20 February (BelTA) - All financial security indicators are in place in Belarus, Finance Minister Andrei Kharkovets said at a session in the ministry, BelTA learned.

All the indicators of economic security related to the public debt are within the economic security parameters, stressed the Finance Minister. In 2012, the public debt totaled Br128.8 trillion, or about 24% of GDP (the ceiling is 45%). "Belarus has met all obligations to service and repay the public debt in time and in full," underscored Andrei Kharkovets.

The external public debt rose slightly and stood at $12 billion, or 19% of GDP, with the ceiling being no more than 25%. “All foreign government borrowings making part of the debt portfolio of Belarus are long-term. Thus the exposure of the debt portfolio to refinancing risk is low. Servicing costs are not high,” said the Finance Minister.

In his words, the average collection period on external government borrowings is 4.7 years, with the average interest rate at 3.7% per annum. Russia accounts for nearly 26% of Belarus’ debt book. The International Monetary Fund holds a 25% share in it, with bonds floated at foreign financial markets accounting for 15%. The EurAsEC loan makes up 14% and China’s loans almost 13.5% of the Belarusian debt portfolio.

“The share of loans raised for investment projects stands at 16.5% of the country’s external public debt portfolio. According to our estimates, this figure will be increasing in the coming years,” the minister added. It is directly connected with the construction of the nuclear power plant in Belarus and implementation of investment projects in cooperation with Chinese banks. “Loan resources are put in the important investment export-oriented projects,” Andrei Kharkovets stressed.