12 Aug 2022 13:33

Ukraine to draw Canadian loan of about $350 mln for Naftogaz purchases of gas

MOSCOW. Aug 12 (Interfax) - The Ukrainian Verkhovna Rada's Budget Committee has approved amendments to the 2022 national budget (Bill 7644), which will increase budget expenses by UAH 270 billion, including UAH 12.7 billion (about $350 million) for the purchase of gas by Naftogaz of Ukraine during the heating season, the Ukrainian media said, quoting Verkhovna Rada deputy Yaroslav Zheleznyak from the Holos faction.

"Envisage as the source for these expenses an increase of state external borrowings in the appropriate amount in the state budget's general fund," Zheleznyak said. He presented a copy of the document and said that Ukraine would get a ten-year loan from Canada with a 1.6% annual interest.

As reported earlier, Bill 7644 drafted by a large group of deputies from the Servant of the People ruling faction and heads of several major parliamentary commissions, increases the 2022 state budget expenditures by UAH 270.18 billion, including UAH 269.45 billion for national security and defense, with larger domestic borrowings. According to Zheleznyak, the government drafted the bill.

The document proposes an increase of Defense Ministry expenditures by UAH 241.16 billion, including UAH 145.3 billion for the payment of salaries. The expenditures will grow by UAH 22.86 billion for the Interior Ministry, UAH 2.46 billion for the Security Service of Ukraine, and UAH 2.22 billion for the Defense Ministry's Main Directorate of Intelligence.

It is also planned to increase the government reserve fund by UAH 715.7 million.

The overall budget expenditures will thus grow to UAH 2.633 billion, which is 75% or UAH 1.136 trillion more than planned before the crisis, Zheleznyak said.

There are plans to increase domestic borrowings to UAH 794.14 billion, the deficit to UAH 1.093 trillion, and the sovereign debt to UAH 3.63 trillion.