Cabinet expands state guarantees to Ukravtodor from UAH 4.3 b to UAH 17 b in 2012

The Ukrainian government has increased government guarantees to the State Agency of Automobile Roads of Ukraine (Ukravtodor) in 2012 to ensure the fulfillment of its liabilities under internal and external loan agreements from UAH 4.295 billion to UAH 17 billion.

The changes are approved in cabinet resolution No. 1178 of December 21, 2012 published on Friday.

The document also cut the government guarantees to state enterprise Financing of Infrastructure Projects (Fininpro) from UAH 5.2 billion to UAH 4.4 billion, as the enterprise in early December has floated eurobonds worth $550 million.

In addition, the cabinet canceled its September decision when it granted guarantees to companies of the State Agency for Investment and National Projects – UAH 2.3 billion to realize the LNG Ukraine National Project.

Initially the national budget for 2012, which was agreed with the International Monetary Fund (IMF), government guarantees were restricted by UAH 15 billion, although during 2012 the limit was gradually increased to UAH 79.36 billion. The law on the national budget for 2013 decreased the limit to UAH 50 billion.

The government in May 2012 provided its guarantees worth up to UAH 5.9 billion to Ukravtodor meet obligations to finance the construction, reconstruction, overhaul and maintenance of general-use roads, including the construction of a highway across the River Dnieper in the direction to the city of Zaporizhia, and the acquisition of road-building machinery and equipment and in early November the limit was reduced to UAH 4.295 billion.

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