Eurasian Development Bank transfers $500m credit to Belarus
<p> MINSK, Oct 16 - PrimePress. The Eurasian Development Bank (EDB) has disbursed a U.S. $500 million tranche of the Eurasian Fund for Stabilization and Development’s loan to Belarus, the bank said in a statement on Friday. </p> <p> </p> <p> The credit funds in the amount of $500 million provided by the Eurasian Development Bank, which manages the funds of the Eurasian Fund for Stabilization and Development, were transferred to the state budget of Belarus on October 16, the Finance Ministry of Belarus said in a statement. </p> <p> </p> <p> The Finance Ministry informs that on 12 October 2020 the Republic of Belarus and the EDB signed an agreement on granting a financial credit from the Eurasian Fund for Stabilization and Development (EFSD) to support the budget of the Republic of Belarus in the conditions of the COVID-19 pandemic. The loan in the amount of $500 million is granted for 10 years in one tranche. </p> <p> </p> <p> “The Programme of the Government and the National Bank of Belarus to Counteract the Impact of COVID-19 on the Economy, Financial and Social Sectors, annexed to the application of the Belarusian authorities for a financial credit, apart from measures to support the healthcare system and the people, also provides for the implementation of prudent macroeconomic policy, including the consolidation of non-priority budget expenditures, optimization of tax benefits, continuation of the policy to ensure market mechanisms for the formation of exchange rates and interest rates. All these measures are aimed at strengthening the debt sustainability of Belarus as a whole,” the EDB said. </p> <p> </p> <p> As previously reported, the loan will be given for a period of 10 years at a floating interest rate, which is defined as the average yield of Russian Eurobonds in US$ for a period of 7 years. The grace period is up to 5 years. </p> <p> </p> <p> Russia promised Belarus $1 billion in intergovernmental loans and to facilitate lending of $500 million through the EFSD. This year, Russia intends to provide $1 billion ($500 million from the EFSD and $500 million in an intergovernmental loan) and then a $500 million intergovernmental loan in 2021. As previously reported, Belarus will use most of the $500 million loan through the EFSD to pay off the $330 million debt to Gazprom. </p> <p> </p> <p> The Eurasian Fund for Stabilization and Development (EFSD) is a regional financial tool established in 2009 by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan inn the amount of $8.513 billion. Its purpose is to help overcome crises, ensure long-term sustainability and facilitate integration of national economies of its member states. The fund is generated by contributions made by the member states. The Russian Federation accounts for 90%. The EFSD is managed by the Eurasian Development Bank. End </p>
2020-10-16
Primepress
MINSK, Oct 16 - PrimePress. The Eurasian Development Bank (EDB) has disbursed a U.S. $500 million tranche of the Eurasian Fund for Stabilization and Development’s loan to Belarus, the bank said in a statement on Friday.
The credit funds in the amount of $500 million provided by the Eurasian Development Bank, which manages the funds of the Eurasian Fund for Stabilization and Development, were transferred to the state budget of Belarus on October 16, the Finance Ministry of Belarus said in a statement.
The Finance Ministry informs that on 12 October 2020 the Republic of Belarus and the EDB signed an agreement on granting a financial credit from the Eurasian Fund for Stabilization and Development (EFSD) to support the budget of the Republic of Belarus in the conditions of the COVID-19 pandemic. The loan in the amount of $500 million is granted for 10 years in one tranche.
“The Programme of the Government and the National Bank of Belarus to Counteract the Impact of COVID-19 on the Economy, Financial and Social Sectors, annexed to the application of the Belarusian authorities for a financial credit, apart from measures to support the healthcare system and the people, also provides for the implementation of prudent macroeconomic policy, including the consolidation of non-priority budget expenditures, optimization of tax benefits, continuation of the policy to ensure market mechanisms for the formation of exchange rates and interest rates. All these measures are aimed at strengthening the debt sustainability of Belarus as a whole,” the EDB said.
As previously reported, the loan will be given for a period of 10 years at a floating interest rate, which is defined as the average yield of Russian Eurobonds in US$ for a period of 7 years. The grace period is up to 5 years.
Russia promised Belarus $1 billion in intergovernmental loans and to facilitate lending of $500 million through the EFSD. This year, Russia intends to provide $1 billion ($500 million from the EFSD and $500 million in an intergovernmental loan) and then a $500 million intergovernmental loan in 2021. As previously reported, Belarus will use most of the $500 million loan through the EFSD to pay off the $330 million debt to Gazprom.
The Eurasian Fund for Stabilization and Development (EFSD) is a regional financial tool established in 2009 by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan inn the amount of $8.513 billion. Its purpose is to help overcome crises, ensure long-term sustainability and facilitate integration of national economies of its member states. The fund is generated by contributions made by the member states. The Russian Federation accounts for 90%. The EFSD is managed by the Eurasian Development Bank. End