The Republic of Uruguay will issue $5 billion worth of sovereign debt during the course of this year and 2018 as the country faces a widening fiscal deficit, El Cronista reported.

Of that amount, $2.25 billion dollars in debt will be issued this year and the remaining $2.75 billion during 2018 as Uruguay requires $3.23 billion in additional financing for 2017 and $3.36 billion for next year, the publication noted.

Previously in June, the country issued $1.25 billion worth of Uruguayan peso-denominated five-year notes, with a 10% fixed interest rate.

As per financing purposes for next year, the report noted that $1.69 billion would be destined to cover debt interest payments, $1.71 billion to pay coupons and $98 million to cover other expenses as well as to finance a $140 million primary deficit.

As of June, the fiscal deficit in Uruguay reached 3.6% of GDP, the report said, citing ministry of economy data.