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Finance Ministry: Russian loan will help Belarus increase trade and economic potential


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The Russian loan will help Belarus develop further the trade and economic relations with Russia, boost the economic potential and strengthen the national currency, the Finance Ministry told  while commenting on the signing of the agreement between the Belarusian and Russia governments on extending the state loan by the Russian Federation to the Republic of Belarus.

The document was signed in Moscow on November 13 by Finance Minister of Belarus Andrei Kharkovets and Deputy Prime Minister – Finance Minister of Russia Aleksei Kudrin. According to the agreement, in 2008 Belarus will be given a $1bn loan.

The Finance Ministry has not specified the terms of the loan.

In October Russia took a decision to allocate a $2 billion loan to Belarus. It will be done in two tranches: $1 billion this year and $1 billion next year.

In 2007 Russia provided a $1.5 billion loan to Belarus for 15 years at LIBOR +0.75%, with the five-year delay of the principal debt payment.

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