BELARUS NEWS AND ANALYSIS

DATE:

20/12/2007

Russia to grant loan to Belarus

RBC, 20.12.2007, Moscow 18:44:16.Russian Deputy PM and Finance Minister Alexei Kudrin and Belarusian Finance Minister Nikolai Korbut have signed an agreement today to grant Belarus a 15-year loan worth $1.5bn at an interest rate of 0.75 percent over LIBOR, or slightly less than 6 percent. Kudrin emphasized that it was a market rate, adding that the loan would be granted with a 5-year grace period. The loan is expected to stabilize the Belarusian economy by raising its gold and currency reserves, as well as to encourage trade between the two countries, Kudrin said.

In turn, Korbut said that the loan was necessary due to an increase in gas prices, as well as to the fact that Belarus had started paying customs duties to Russia this year. The loan is to be fully transferred to Belarus by December 31, 2007.

Source:

http://www.rbcnews.com/free/20071220184416.shtml