BELARUS NEWS AND ANALYSIS

DATE:

27/11/2007

Belarus seeks Russian stabilization loan for $1.5 Bln at LIBOR+0.75%

LONDON. Nov 27 (Interfax) - The Belarussian Finance Ministry hopes to get a Russian stabilization loan worth $1.5 billion at LIBOR+0.75% annually, Finance Minister Nikolai Korbut told Interfax.

"The Russian stabilization loan will cost LIBOR+0.75% annually; this is essentially a commercial loan but the margin is lower," he said.

"Belarus and the Russian Finance Ministry have drafted a loan agreement and I have the right to hold talks and sign the agreement," he said.

Russia has not yet made a final decision on the loan, he said.

Korbut said Belarus expects to get $1 billion at the end of this year and $500 million in the first half of 2008.

He said that including the payment next year of the next $625 million installment by Gazprom (RTS: GAZP) fro 12.5% of Beltransgaz, the money would be enough to cover the budget deficit. Korbut said lending should be curbed and the focus should be on foreign direct investment. "Our foreign debt is such that it will allow us to weather any outside threats," he said.

As for U.S. sanctions against Belneftekhim, he said some funds were frozen but only a small amount.

"We have to exclude the dollar from payments to prevent possible negative consequences; we make payments to Russia in dollars (for fuel) and should switch to rubles," he said.

Source:

http://www.interfax.com/3/339816/news.aspx