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Ukraine’s draft budget 2017: State borrowings projected at almost $6.75 bln

The draft state budget for 2017 prepared by Ukraine's Cabinet of Ministers projects government borrowings at UAH 174.797 billion (about US$6.75 billion), which is lower by UAH 28.2 billion ($1.09 billion) compared to the 2016 target, according to draft law No. 5000 on the national budget of Ukraine for 2017.
Ukraine’s draft budget 2017: State borrowings projected at almost $6.75 bln

Foreign borrowings are projected at UAH 70.890 billion ($2.74 billion), or 40.6% of total budget revenues for the next year, while domestic borrowings are forecast at UAH 103.9 billion ($4.01 billion), accounting for 59.4% of total budget revenues, UNIAN reports.

“Government borrowings will depend on the situation on the financial markets of Ukraine and other countries and on lending terms of respective international financial institutions. At the same time, rates of domestic debt instruments will vary within 7-14% per annum on the average, depending on a debt tool. As for foreign debt instruments, rates will be about 8% per annum for domestic government bonds, 1% per annum for the EU macro-financial assistance,” an explanatory note to the document reads.

At the same time, the terms of government borrowings may vary subject to external political, economic and military factors.

The country’s state debt as of December 31, 2017 is limited to UAH 1.717 trillion (about $66 billion), and government-guaranteed debt is fixed at UAH 579.369 billion (nearly $22.4 billion).

Ukraine’s state debt calculated in the national currency amounts to 66.4% of GDP, and the amount of state and government-guaranteed debt is capped at 88.8% of GDP.