Belarus’ govt hopes to keep national debt at or below 40% of GDP in 2021-2025
<p> MINSK, Jan 6 - PrimePress. The government of Belarus intends to keep the national debt at or below 40% of gross domestic product (GDP) in 2021-2025, according to the government action plan for the period to 2025 approved by Council of Ministers’ resolution No.758 of December 24, 2020 posted on the National Legal Internet Portal. </p> <p> </p> <p> According to Finance Ministry, the national debt (without state guarantees) made up 36.2% of GDP as of December 1, 2020. The Eurasian Fund for Stabilization and Development (EFSD) estimated the external liabilities of Belarus at over 80% of GDP. According to the EFSD, Russia accounts for $8 billion (44% of the national debt); China – 18%; EFSD – 12%; Eurobonds and government bonds on the Russian market – 20%. The repayments will peak in 2023, when Belarus will spend up to 4 billion dollars to pay off and service its liabilities. International financial institutions and rating agencies prefer a “broader” definition of the national debt of Belarus, inclusive of government guarantees and obligations of local authorities. The EFSD is no exception. According to EFSD experts, the government debt will be at 54% in 2021 and will decrease below 52% in 2025 at the earliest. </p> <p> </p> <p> In accordance with the government action plan for 2021-2025, Belarus is going to take loans of international financial institutions solely to finance socially significant and infrastructure projects. Belarusian officials previously stated the need for external borrowings to refinance the foreign public debt. After the European Union, the U.S., the UK and their allies imposed sanctions against Belarus in the second half of 2020, the European Investment Bank and the European Bank for Reconstruction and Development put cooperation with Belarus on hold. Most likely, Belarus will also encounter obstacles, trying to enter global borrowing markets. </p> <p> </p> <p> The Belarusian government also plans to maintain directed lending only to the extent necessary to complete the previously initiated projects. The crediting of new investment projects will be carried out on market terms from 2023. </p> <p> </p> <p> It is planned to switch to competitive distribution of transfers in 2023-2025 to reimburse part of the capital costs of investment projects under state programs. End </p>
2021-01-07
Primepress
MINSK, Jan 6 - PrimePress. The government of Belarus intends to keep the national debt at or below 40% of gross domestic product (GDP) in 2021-2025, according to the government action plan for the period to 2025 approved by Council of Ministers’ resolution No.758 of December 24, 2020 posted on the National Legal Internet Portal.
According to Finance Ministry, the national debt (without state guarantees) made up 36.2% of GDP as of December 1, 2020. The Eurasian Fund for Stabilization and Development (EFSD) estimated the external liabilities of Belarus at over 80% of GDP. According to the EFSD, Russia accounts for $8 billion (44% of the national debt); China – 18%; EFSD – 12%; Eurobonds and government bonds on the Russian market – 20%. The repayments will peak in 2023, when Belarus will spend up to 4 billion dollars to pay off and service its liabilities. International financial institutions and rating agencies prefer a “broader” definition of the national debt of Belarus, inclusive of government guarantees and obligations of local authorities. The EFSD is no exception. According to EFSD experts, the government debt will be at 54% in 2021 and will decrease below 52% in 2025 at the earliest.
In accordance with the government action plan for 2021-2025, Belarus is going to take loans of international financial institutions solely to finance socially significant and infrastructure projects. Belarusian officials previously stated the need for external borrowings to refinance the foreign public debt. After the European Union, the U.S., the UK and their allies imposed sanctions against Belarus in the second half of 2020, the European Investment Bank and the European Bank for Reconstruction and Development put cooperation with Belarus on hold. Most likely, Belarus will also encounter obstacles, trying to enter global borrowing markets.
The Belarusian government also plans to maintain directed lending only to the extent necessary to complete the previously initiated projects. The crediting of new investment projects will be carried out on market terms from 2023.
It is planned to switch to competitive distribution of transfers in 2023-2025 to reimburse part of the capital costs of investment projects under state programs. End