KIEV, Nov. 26 – Real estate lending is being constrained due to the overflow of funds to more profitable state borrowing instruments used to patch budget gaps, the volume of which could reach $16-18 billion in 2013, according to Troika Dialog Ukraine Investment Company Managing Director Ihor Petrashko.

"The state cannot solve the issue [of crediting the economy] until it settles the fundamental problem of a lack of money in 2013, which includes a budget deficit of some $8-9 billion and expenses on servicing foreign debts worth $8-9 billion. We have a gap of $16-18 billion, which has to be closed by the Finance Ministry jointly with other state institutions," he said, speaking at the third Ukrainian Investment Forum in Kiev.