Belarus’ public debt up to 54% of GDP in 2020 from 41.5% in 2019 – EDB
<p> MINSK, Jan 12 - PrimePress. Belarus’ aggregate public debt, including state guarantees and local budgets’ liabilities increased in 2020 to over 54% of gross domestic product (GDP) against 41.5% of GDP in 2019, says the Eurasian Development Bank (EDB), following the request of the Belarusian authorities to provide a $500 million loan that was transferred to Belarus in October 2020. </p> <p> </p> <p> According to the EDB, the debt grew mostly (around 50%) due to the drop of the national currency, given that more than 90% of the debt is denominated in foreign exchange. </p> <p> </p> <p> The growing budget deficit and GDP contraction are also among the most important factors. </p> <p> </p> <p> The EDB expects that Belarus’ will remain around 54% of GDP in 2021 against the backdrop of decreased economic activity. </p> <p> </p> <p> Russia’s $1 billion loan to Belarus ($0.5 billion received in December 2020 and $0.5 billion expected in 2021) and the $0.5 billion loan from the Eurasian Fund for Stabilization and Development will help improve the country’s solvency. </p> <p> </p> <p> According to the EDB, in the medium term, thanks to the reduced debt service burden, Belarus will need 5% less extra borrowing in 2021-2023 to compare with current 7% of GDP. The main effect will take place in 2021. The debt servicing burden will also decrease in 2023, the year of peak of payments. </p> <p> </p> <p> Stabilization of Belarus’ financial position in the short term will bring the public debt below 52% of GDP in 2025, the bank believes. </p> <p> </p> <p> The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB charter capital totals US $7 billion. The bank’s member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. End </p>
2021-01-13
Primepress
MINSK, Jan 12 - PrimePress. Belarus’ aggregate public debt, including state guarantees and local budgets’ liabilities increased in 2020 to over 54% of gross domestic product (GDP) against 41.5% of GDP in 2019, says the Eurasian Development Bank (EDB), following the request of the Belarusian authorities to provide a $500 million loan that was transferred to Belarus in October 2020.
According to the EDB, the debt grew mostly (around 50%) due to the drop of the national currency, given that more than 90% of the debt is denominated in foreign exchange.
The growing budget deficit and GDP contraction are also among the most important factors.
The EDB expects that Belarus’ will remain around 54% of GDP in 2021 against the backdrop of decreased economic activity.
Russia’s $1 billion loan to Belarus ($0.5 billion received in December 2020 and $0.5 billion expected in 2021) and the $0.5 billion loan from the Eurasian Fund for Stabilization and Development will help improve the country’s solvency.
According to the EDB, in the medium term, thanks to the reduced debt service burden, Belarus will need 5% less extra borrowing in 2021-2023 to compare with current 7% of GDP. The main effect will take place in 2021. The debt servicing burden will also decrease in 2023, the year of peak of payments.
Stabilization of Belarus’ financial position in the short term will bring the public debt below 52% of GDP in 2025, the bank believes.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB charter capital totals US $7 billion. The bank’s member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. End