Ukraine govt debt payments to reach UAH 95.5 bln in 2012
KYIV. Dec 22 (Interfax-Ukraine) - Total payments on government debt to be made in 2012 are estimated at UAH 95.5 billion (around $12 billion), including UAH 42.3 billion on foreign debt, says a government's explanatory note for the second reading of the budget draft.
The Cabinet of Ministers said the forecast debt servicing amount is UAH 29.6 billion, redemption payments - UAH 65.9 billion and foreign debt payments - UAH 31.25 billion.
The government said the forecast on foreign debt was raised by UAH 16.2 billion from the September version of the budget draft due to the extension of the VTB loan of $2 billion, which is now due to be repaid in June 2012.
The payment plan for 2011 including the VTB loan was UAH 61.49 billion, however, as of December 19, UAH 40 billion had been paid, including UAH 7.96 billion on foreign debt. In addition, the Finance Ministry redeemed $600 million worth of one-year Eurobonds. The State Treasury reported that spending from the general 2011 budget fund on servicing government debt was planned at UAH 23.23 billion.
Government borrowing in 2012 is predicted at UAH 98.5 billion, including foreign borrowing of UAH 37.5 billion. Ukraine plans to issue UAH 12 billion in government bonds to replenish Naftogaz Ukrainy charter capital.
The draft budget sets aside UAH 5 billion for government guarantees.
The document envisages privatization revenue of UAH 10 billion, budget deficit financing of UAH 25.13 billion and a ceiling government debt at the end of 2012 of UAH 415.33 billion compared to UAH 375.64 billion at the end of 2011.
The Finance Minister predicts Ukraine's direct debt, which in 2011 will drop from 29.6% of GDP to 29.1% of GDP, will go down to 27.6% in 2012, 25.3% in 2013 and 24.3% in 2014.
The official exchange rate on December 22 stood at UAH 7.9893/$1.