Ukraine plans to borrow on the foreign market in April-May and has already began talks on the matter, acting Finance Minister Ihor Umansky said. "Perhaps we will manage to do it in the first quarter. But in April-May we definitely can and will get to foreign markets," he said. "We already have proposals from a host of investment banks and funds," he told journalists in Kyiv on Wednesday.
Umansky did not disclose the amount of the borrowing, saying that talks are underway with potential investors.
The Finance Ministry believes the optimal term would be two-three years at an interest rate "no higher than single digits."
Ukraine will give preference to bilateral loans over syndicated loans. However, the Finance Ministry is ready to examine the possibility of public placements, he said.
Ukraine planned to return to the Eurobond market in 2010 to raise UAH 8.125 billion, according to the draft 2010 budget, which has been sent back to parliament for revision. That is the equivalent of $1.08 billion based on the budgets assumed exchange rate of 7.5 hryvni/$1 in 2010.
The draft provided for direct borrowing of UAH 120.42 billion and provision of 45 billion rubles in state guarantees.
Ukraine’s direct state debt and state-guaranteed debt rose 45.8% to $35.871 billion in January-November 2009.
The official exchange rate on January 27 was UAH 8.0048 /$1.
