State Budget Deficit Widens to 0.9% of GDP in 10M07

The state budget deficit reached USD 0.95 bln in 10M07 (from USD 0.55 bln in 9M07 and USD 0.04 bln in 8M07), or 0.9% of GDP, according to official data from the Economy Ministry. Continued budget financing came from proceeds from privatization (USD 0.40 bln, 18.9% of annual volume) and decreased budget provisions (USD 0.53 bln, down USD 0.34 bln in October). Executed borrowing (USD 0.54 bln on local market, USD 0.61 bln on international markets), was only USD 0.1 bln more than debt service. Polina Khomenko: As we expected, our year end estimate is for the budget deficit to reach 1.9% of GDP (incomes 23.2% of GDP and expenditures 25.1% of GDP).