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Govt proposes to reduce ratio of public debt to GDP to 57.6% in draft state budget for 2022 – Finance Ministry

KYIV. Sept 15 (Interfax-Ukraine) – The Cabinet of Ministers in the draft law on the state budget of Ukraine for 2022 proposes to reduce the ratio of public debt to GDP to 57.6% compared to the expected 64.7% in the state budget for 2021, according to the materials of the Ministry of Finance.

The Ministry of Finance said it is proposed to determine the state budget deficit in 2022 at the level of UAH 188 billion (or 3.5% of GDP).

At the same time, expenditures on public debt in 2022 are envisaged at the level of UAH 574.7 billion, which is 8.3% less than in 2021, taking into account the changes made to the state budget, according to the data of the Ministry of Finance.

Servicing the public debt in 2022 is expected to require UAH 181.4 billion, repayment – UAH 393.3 billion.

According to the ministry, the draft state budget assumes the following structure for financing public debt expenditures: UAH 347.9 billion – through the issue of government bonds in the national currency, UAH 93.6 billion – foreign currency government bonds, UAH 82.3 billion – commercial loans, UAH 47.9 billion – loans from international financial organizations and UAH 3 billion – official loans.

The draft state budget for next year also provides for expenditures of UAH 3 billion for the Affordable Loans 5-7-9% program and UAH 10 billion for state guarantees on a portfolio basis, according to the Ministry of Finance.

At the same time, the government proposes to provide for borrowing in the amount of UAH 40 billion under state guarantees for the development of road infrastructure in the draft state budget, the ministry said.