KYIV, Sept 26 – According to the draft 2001 state budget submitted by the Cabinet of Ministers to Parliament, the government plans to pay Hr 84 million out of its debt to commercial banks in 2001, Ukrainian News reported.
The draft budget states that this money will be paid to Ukrsotsbank, the Ukraina Bank, Prominvestbank, the Export-Import Bank, and the Savings Bank. The last two are expected to receive more money than the other banks.
The Cabinet of Ministers plans to repay Hr 5.16 million in debts to the Export-Import Bank and Hr 32.4 million to the Savings Bank.
The money that the government plans to pay to banks is half the amount of debt payments to banks provided for in this year’s state budget.
According to the Law on the 2000 State Budget, the Finance Ministry is to repay Hr 162 million in debts to commercial banks this year.
The Finance Ministry paid Hr 90.9 million to commercial banks during the January-July period of this year, the report said.
The government’s debt to commercial banks accumulated as a result of the nonpayment of government-guaranteed loans obtained by companies.
After long negotiations with commercial banks last year, the cabinet accepted responsibility for Hr 620 million in debts, including interest, and issued bills to service part of the debts.
Despite the fact that the 1999 budget provided for funds to repay debts to commercial banks, the Finance Ministry did not make any payments.
