Fitch forecasts Belarus’ net external debt growth in 2020 to 42% of GDP
<p> MINSK, Jul 27 - PrimePress. Fitch Ratings forecasts Belarus’ net external debt growth by the end of 2020 to 42% of GDP, reads the Fitch report on the Commonwealth of Independent States (CIS) and the Black Sea Region. </p> <p> </p> <p> According to the Ministry of Finance of Belarus, the external debt of the public administration sector (including the external debt guaranteed by the public administration sector) made up 32.7% of GDP as of May 1, 2020. </p> <p> </p> <p> Fitch says that continuous access to finance is key for Belarus, considering the large amount to be allocated for debt repayment in 2021. Belarus’ need for financing is expected to remain high, since the country is to pay $3.4 billion on the debt in foreign exchange in 2021. </p> <p> </p> <p> Belarus will pay 4.5% of GDP in 2020 and 7.1% of GDP in 2021 on external debts, which is one of the region’s highest rates. </p> <p> </p> <p> According to Fitch, the flexibility of short-term financing in Belarus is ensured, among other things, by the availability of foreign exchange cash resources and potential bilateral financing from China. However, China’s inputs have not made a big change in most countries of the region except for Belarus, which received $500 million in 2019 and is negotiating further borrowing. </p> <p> </p> <p> Fitch experts say that access to international markets remains limited for the regional economies. Belarus was the first to return to the Eurobond market in June 2020, placing $1.25 billion in bonds. Belarus has also floated government bonds worth $135 million in Russia, and may issue additional $135 million later this year. </p> <p> </p> <p> Fitch Ratings expects the region’s economy to contract by an average of 4.4% in 2020, while Belarus’ GDP will decline by 5%. End </p>
2020-07-28
Primepress
MINSK, Jul 27 - PrimePress. Fitch Ratings forecasts Belarus’ net external debt growth by the end of 2020 to 42% of GDP, reads the Fitch report on the Commonwealth of Independent States (CIS) and the Black Sea Region.
According to the Ministry of Finance of Belarus, the external debt of the public administration sector (including the external debt guaranteed by the public administration sector) made up 32.7% of GDP as of May 1, 2020.
Fitch says that continuous access to finance is key for Belarus, considering the large amount to be allocated for debt repayment in 2021. Belarus’ need for financing is expected to remain high, since the country is to pay $3.4 billion on the debt in foreign exchange in 2021.
Belarus will pay 4.5% of GDP in 2020 and 7.1% of GDP in 2021 on external debts, which is one of the region’s highest rates.
According to Fitch, the flexibility of short-term financing in Belarus is ensured, among other things, by the availability of foreign exchange cash resources and potential bilateral financing from China. However, China’s inputs have not made a big change in most countries of the region except for Belarus, which received $500 million in 2019 and is negotiating further borrowing.
Fitch experts say that access to international markets remains limited for the regional economies. Belarus was the first to return to the Eurobond market in June 2020, placing $1.25 billion in bonds. Belarus has also floated government bonds worth $135 million in Russia, and may issue additional $135 million later this year.
Fitch Ratings expects the region’s economy to contract by an average of 4.4% in 2020, while Belarus’ GDP will decline by 5%. End