Bloomberg News

Ukraine Plans to Borrow $3.9 Billion This Quarter for Budget

February 09, 2012

(Updates with repayment plan in second paragraph, full-year borrowing plan in fourth.)

Feb. 9 (Bloomberg) -- Ukraine plans to borrow 30.9 billion hryvnia ($3.9 billion) at home and on international markets this quarter to cover the budget deficit, Finance Ministry said.

The government wants to raise 17.2 billion hryvnia domestically and 13.67 billion hryvnia abroad, 12.15 billion of which would come next month, the ministry, based in the capital, Kiev, said today in a statement on its website. Ukraine must repay 10.1 billion hryvnia in debt this quarter, 85 percent of which is domestic, the ministry said.

The former Soviet republic picked JP Morgan Chase & Co., Morgan Stanley and Russian investment banks VTB Capital and Troika Dialog, which is controlled by OAO Sberbank, to lead manage a potential Eurobond sale, the ministry said in a Feb. 3 statement on its website, without providing further details.

Ukraine is facing higher prices for natural-gas imports from Russia this year and has so far failed to restart disbursements from a $15.6 billion International Monetary Fund loan program. In 2012 as a whole, the government plans to borrow 60.9 billion hryvnia domestically and 37.5 billion hryvnia abroad, according to the ministry.

--Editors: Andrew Langley, Balazs Penz

To contact the reporter on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net;

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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