Stabilization financing availability for Belarus at $14.7-16.7bn – EDB
<p> MINSK, Jun 30 - PrimePress. The availability of stabilization financing for Belarus stands at $14.7-16.7 billion, the Eurasian Development Bank (EDB) says in a report on Armenia, Belarus, Kyrgyzstan and Tajikistan. </p> <p> </p> <p> According to the first of three approaches, the calculated availability of stabilization financing sources for Belarus stands at $14.7 to $16.7 billion. Other two approaches are of more practical importance with a 25% decrease in reserves in absolute terms and excluding reserves (since a significant reduction in reserves is an extreme scenario that could lead to a crisis of the balance of payments). The approach based on a 25% decrease in international reserve assets, the available sources of stabilization financing are estimated for Belarus from $7.7 billion to $9.7 billion. If the reserves are completely excluded (external financing alone) the amount for Belarus ranges from $5.3 billion to $7.3 billion, reads the report. </p> <p> </p> <p> The above calculations do not actually take into account data on bilateral support, which makes the final assessment conservative (at the lower threshold). Nevertheless, the report confirms substantial volumes of bilateral support and its importance in the “balance” of stabilization financing. </p> <p> </p> <p> The International Monetary Fund (IMF), the Eurasian Fund for Stabilization and Development (EFSD) and bilateral loans from Russia topped the list of sources of financing for Belarus in 2009-2019. </p> <p> </p> <p> Belarus received $3 billion from the EFSD in 2011 and $2 billion in 2016, $3.2 billion from the IMF in 2009, and $200 million from the World Bank in 2009. </p> <p> </p> <p> As part of bilateral anti-crisis support by Russia for the countries of the region, Belarus obtained a 15-year credit line in the amount of $1 billion in November 2008, which was increased by $500 million in March 2009. Belarus received two loans from the Russian government for a total of $2 billion in 2014 and two loans in the amount of $870 million in 2015. This support was clearly anti-crisis in the face of the economic crisis, depreciation of the national currency, reduction of budget revenues and international reserves to critically low values. </p> <p> </p> <p> Belarus also received financial assistance from China in the form of credit lines to eliminate the balance of payments deficit and maintain gold and FX reserves. A virtually unlimited credit line in yuans was opened for Belarus in 2015, from which $618 million in equivalent was raised. </p> <p> </p> <p> Belarus is an EDB regional leader in the volume of swap resources received from China. The swap agreement with Belarus in 2009 (20 billion yuan, around $3 billion in equivalent) covered a three-year turnover. Belarus is not a priority trading partner for China, though. Belarus-China bilateral trade accounts for 0.04% of China’s trade. </p> <p> </p> <p> Therefore, the Belarusian-Chinese swap agreement can be considered China’s financial support for Belarus in the context of the global financial and economic recession. </p> <p> </p> <p> The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB charter capital totals US $7 billion. The bank’s member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. End </p>
2020-07-01
Primepress
MINSK, Jun 30 - PrimePress. The availability of stabilization financing for Belarus stands at $14.7-16.7 billion, the Eurasian Development Bank (EDB) says in a report on Armenia, Belarus, Kyrgyzstan and Tajikistan.
According to the first of three approaches, the calculated availability of stabilization financing sources for Belarus stands at $14.7 to $16.7 billion. Other two approaches are of more practical importance with a 25% decrease in reserves in absolute terms and excluding reserves (since a significant reduction in reserves is an extreme scenario that could lead to a crisis of the balance of payments). The approach based on a 25% decrease in international reserve assets, the available sources of stabilization financing are estimated for Belarus from $7.7 billion to $9.7 billion. If the reserves are completely excluded (external financing alone) the amount for Belarus ranges from $5.3 billion to $7.3 billion, reads the report.
The above calculations do not actually take into account data on bilateral support, which makes the final assessment conservative (at the lower threshold). Nevertheless, the report confirms substantial volumes of bilateral support and its importance in the “balance” of stabilization financing.
The International Monetary Fund (IMF), the Eurasian Fund for Stabilization and Development (EFSD) and bilateral loans from Russia topped the list of sources of financing for Belarus in 2009-2019.
Belarus received $3 billion from the EFSD in 2011 and $2 billion in 2016, $3.2 billion from the IMF in 2009, and $200 million from the World Bank in 2009.
As part of bilateral anti-crisis support by Russia for the countries of the region, Belarus obtained a 15-year credit line in the amount of $1 billion in November 2008, which was increased by $500 million in March 2009. Belarus received two loans from the Russian government for a total of $2 billion in 2014 and two loans in the amount of $870 million in 2015. This support was clearly anti-crisis in the face of the economic crisis, depreciation of the national currency, reduction of budget revenues and international reserves to critically low values.
Belarus also received financial assistance from China in the form of credit lines to eliminate the balance of payments deficit and maintain gold and FX reserves. A virtually unlimited credit line in yuans was opened for Belarus in 2015, from which $618 million in equivalent was raised.
Belarus is an EDB regional leader in the volume of swap resources received from China. The swap agreement with Belarus in 2009 (20 billion yuan, around $3 billion in equivalent) covered a three-year turnover. Belarus is not a priority trading partner for China, though. Belarus-China bilateral trade accounts for 0.04% of China’s trade.
Therefore, the Belarusian-Chinese swap agreement can be considered China’s financial support for Belarus in the context of the global financial and economic recession.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB charter capital totals US $7 billion. The bank’s member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. End