OREANDA-NEWS. July 30, 2010. The government does not preclude placement of Eurobonds to finance the budget deficit. This was announced by the Prime Minister of Ukraine Mykola Azarov in an interview.

Mykola Azarov recalled that Ukraine, according to a new program of cooperation with the IMF is committed to strictly comply with and not to exceed the parameters of state budget deficit. So, according to the Prime Minister, the budget deficit cannot exceed 60 billion UAH by the end of this year. "This is a huge amount. And these 60 billion, and last year more than 100 billion, this huge amount should be replaced by giant loans, we do not have other mechanism"- he said.

"In frame of the IMF tranche, we will calculate how many resources we will have to repay the deficit and in frame of this resource, we will initiate measures to finance that deficit: either by placing the European obligations, the so-called Eurobonds, or by borrowing in a different way. It is our right" - Mykola Azarov emphasized.

The Prime Minister noted that just a month ago, Ukraine refused to place its Eurobonds because of unfavorable situation in the financial market. "We decided that the terms that were proposed to us were unprofitable. We left the market, but this does not mean that we do not have to return. We will return when advantageous conditions will be provided for us. We will consider where is it best to borrow".