2008 State Budget Draft Draws on USD 2.1 bln in New Debt

According to the Finance Ministry, the state budget for 2008 approved by the Cabinet of Ministers provides for borrowing USD 2.1 bln (UAH 10.7 bln) from domestic and international debt markets in 2008. The state budget deficit for next year is projected at USD 3.5 bln (2.2% of GDP). Oleksandr Klymchuk: The borrowing projection proves that the government retains a meager debt appetite and wants to keep total state debt close to the current level in absolute terms (~USD 16 bln), while relative to GDP it will continue to decline.