KYIV, March 19 – Ukraine will seek to borrow $4 billion in order to accelerate economic growth and to be able to pay off debts coming due in 2019, Finance Minister Oksana Markarova said Tuesday.

“This year we have to borrow about $4 billion,” Markarova said in an interview with Radio NF. “This is not a secret as [2019] budget calls for repayment of UAH 418 billion in debts, a third of budget spending.”

The developments come amid dismal performance with privatization last year when only 2% of scheduled assets have been sold to investors, forcing the government to borrow money instead to bridge budget gap.

The comment comes after Ukraine has borrowed $600 million under World Bank guarantees that allow the government to raise money at lower-than-market interest rates.

“The money has hit the accounts. This borrowing was at 4%,” Markarova said, adding that the government was also able to raise an undisclosed additional amount via an issue of Eurobonds at below 10%.

Ukraine has started talks with the World Bank seeking to secure guarantees for new undisclosed round of borrowing, with all remaining borrowing likely to come from capital markets.

“The talks with the World Bank have begun concerning the next guarantees,” Markarova said. “I hope we will be able to use them this year.”

“For the remaining amount, we’ll be monitoring and tapping capital markets,” she said.

Ukraine paid out UAH 115.4 billion in debts in 2018, 250% more than the similar payouts in 2017.

Christine Lagarde, the managing director of the International Monetary Fund, said last month that Ukraine must accelerate structural reforms to achieve stronger economic growth.

"I highlighted the urgency for Ukraine to safeguard the gains made in restoring macroeconomic stability and to press ahead with the deeper structural reforms needed to achieve stronger economic growth and improve people's living standards in a sustainable manner," Lagarde said.

Lagarde made the comments in a statement issued after meeting with former Prime Minister Yulia Tymoshenko, a presidential candidate for election this month.

The IMF approved a new $3.9 billion stand-by aid agreement for Ukraine in December 2019 to help maintain stability. (nr/ez)