The Russian Federation will issue a loan to Belarus for 10 years under guarantees of fulfillment of previous obligations

The Russian Federation will issue a loan to Belarus for 10 years under guarantees of fulfillment of previous obligations

The Russian Federation will issue a loan to Belarus for 10 years under guarantees of fulfillment of previous obligations

MOSCOW (Reuters) – Russia can provide Belarus with a 10-year loan, provided that Minsk fulfills all obligations on debts to Moscow and Russian state-owned energy supply companies, Finance Minister Anton Siluanov said.

On Monday, Russian President Vladimir Putin announced at a meeting with Alexander Lukashenko about Russia's plans to provide all-round support to Belarus, including a $ 1.5 billion loan.

Russia will give Belarus a ruble interstate loan equivalent to $ 500 million this year and another one in 2021, Siluanov told reporters. Also, by the end of this year, Belarus will receive $ 500 million from the Eurasian Fund for Stabilization and Development (EFSD).

“The conditions are now being worked out with the Belarusian Ministry of Finance. In terms of the dollar, the EFSD gives based on the average cost of bonds of Russia and Kazakhstan, in terms of rubles, the cost will be slightly higher than the cost of our borrowings on the OFZ market, with a small premium,” Siluanov said.

“On average, the length of our loans was about 10 years, and we will be guided by these terms when preparing the conditions for the provision of borrowed funds.”

He specified that the obligations of Belarus to Russia on debt and interest for this year are slightly less than $ 1 billion and about $ 460 million under the EFSD.

“Russia will receive the stability of our partner's finances,” Siluanov said when asked what Russia would receive in return from Belarus.

“We will receive guarantees of the stable fulfillment of obligations by Belarus to Russian counterparties, namely, the terms of the loan are formulated in such a way that Belarus does not allow delinquencies on the obligations of both the sovereign itself and companies where there is state participation, where the borrower is Belarus. so that the obligations to our companies for the supply of energy resources are fulfilled in full. ”

(Daria Korsunskaya. Editor Maxim Rodionov)

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