KIEV, Sept 1 (Reuters) - Ukrainian talks with the International Monetary Fund next month on a fourth loan tranche are expected to be complicated by the level of state borrowing, a deputy finance minister said on Tuesday.
"It won't be the first time that we would have had difficult, dynamic but nevertheless successful negotiations. This time, it will be even more difficult," Deputy Finance Minister Valery Alyeshyn told journalists.
"This is because some targets will have to be corrected in the 2009 state budget to receive the next tranche at the very least. What is being talked about is the level of state debt allowed in the state budget," he said.
He did not give any further details, but the president's office had said earlier that the government's borrowing as of July 31 had almost reached the full-year limit set in the budget of 193 bilion hryvnias ($24.2 billion). A statement on the president's website said state borrowing this year reached 185 billion hryvnias, or 2.6 times more than during all of last year.
An IMF mission has arrived in Kiev to help the government draw up the 2010 budget by Sept. 15. Another mission is expected by the end of October to discuss the fourth tranche expected to be worth about $3.8 billion. (Reporting by Natalya Zinets; writing by Sabina Zawadzki)