Belarus having problems raising $600-mln Russian loan
Belarus is having difficulties raising a Russian government loan of $600 million and the last $200-million tranche of a Fund for Stabilization and Development (EFSD) credit.
"As is turned out, there are some difficulties with the Russian $600 million loan. The decision on the $200 million loan from the EFSD has been delayed for some reason too, although Belarus has fulfilled all requirements," the BelTA news agency quoted Belarusian Finance Minister Maxim Yermolovich as saying.
Yermolovich said that this year Belarus was planning to repay external commitments with the help of the loan of the Russian government ($600 million), the tranche of the EFSD facility ($200 million) and the budget surplus ($700 million), and through borrowings on the domestic market.
"This, in principle, would have been enough to honor the obligations. In addition we are planning to raise $150 million in Russian bond market," he said.
"This is why the government has started exploring alternative ways of borrowing. The ministry has already raised $500 million in the domestic market through bonds denominated in US dollars and euros. The Finance Ministry also plans to replace part of Russian resources with the Chinese ones. A preliminary agreement has been reached with China Development Bank to raise 3.5 billion yuan (approximately $500 million in equivalent)," Yermolovich said.
The Belarusian Finance Ministry continues to work on the placement of sovereign bonds in the Russian market. "We are technically ready. We have the two-year borrowing program. This year we are planning to float approximately 10 billion rubles," Yermolovich said.
"We will make up for the resources that turned out inaccessible. We have developed an action plan to raise funds on the Chinese, Russian, and domestic markets. All preparatory events have been almost completed. If the decision on the EFSD tranche is positive and we progress in the talks with the Russian government, we will get $200 and $600 million. We are not giving up our plans to work with Chinese investors, in the Russian domestic market. Thus, we will secure financing for 2020 as well," he said.
Reports have said Belarus plans to borrow up to $1 billion abroad each year.
