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Belarus has no plans to take out new foreign loans this year amid soaring external debt, says finance minister

 

The Belarusian government does not plan to take out new foreign loans this year amid the country`s soaring external debt, Finance Minister Andrey Kharkavets told reporters on Thursday, speaking in the House of Representatives (lower parliamentary chamber).

The debt is about to hit its safety limit set as a percent of Gross Domestic Product (GDP), said the minister, noting that the country’s external debt payments due this year were estimated at up to $1.6 billion.

New loans may be taken out only for the purpose of restructuring the debt or funding large-scale investment projects, said Mr. Kharkavets.

The minister also denied the government’s plans to raise new funds through Eurbonds this year.

But the government must consider various options in its attempt to restructure the country’s external debt, said the minister. “If need be, we will raise debt using the cheapest facilities available.”

After receiving another loan tranche from the Anti-crisis of the Fund Eurasian Economy Community (EurAsEC) earlier this year and anticipating another, Belarus is expected to have enough funds in 2012 and does not need to borrow more, said Mr. Kharkavets. But the next year is expected to be difficult and Belarus will, perhaps, have to apply for new foreign loans, he added.

Raisa Savitskaya, deputy chairperson of the State Control Committee, said that the amount of Belarus` external debt payments would be the highest in 2013 and 2014. In 2015, public debt payments will reach a peak, she said.

In addition, debts on loans issued against the guarantee of the Republic of Belarus tripled to total 27,700 billion rubels (around $3.46 billion) in 2011, said Ms. Savitskaya.

According to the National Bank of Belarus, the country`s gross external debt decreased by 0.9 percent in the first quarter of 2012 to $33.7 billion as of April 1. //BelaPAN