Belarus’ FinMin mulling borrowings in Russia, Asia, domestic market in medium term
MINSK, Jul 9 - PrimePress. The Belarusian Ministry of Finance considers borrowings in Russia, Asia and in the domestic market to refinance the national debt in the medium term, the ministry’s press office reports.<br> <br> “The imposed sanctions do not change the approaches previously outlined by the Ministry of Finance to the refinancing of public debt this year. Borrowing in the Eurobond market in 2021 was not originally planned, reads the statement.<br> <br> Belarus expects $500 million in the second tranche of the Russian state loan in 2021, receipts from securities placed on the Russian and domestic financial markets, and a loan from the OPEC Fund for International Development for health care as part of the COVID-19 pandemic response.<br> <br> The Finance Ministry says that repayment and servicing of the public debt is a priority over other payments from the national budget.<br> <br> “International rating agencies have trust in the country as a reliable borrower. For instance, Standard & Poor’s believes that the sanctions imposed by the European Union will not put a significant pressure on Belarus’ balance of payments or the ability of the Belarusian government to make payments on the public debt. The agency affirmed the sovereign credit ratings of the republic at ‘B/B’,” says the ministry.<br> <br> As previously reported, on June 25, 2021, the EU Council introduced sanctions against largest sectors of Belarus’ economy. The sanctions prohibit direct or indirect sale, supply, transfer or export to any natural or legal person, entity or body in Belarus or for use in Belarus of goods used for the production or manufacturing of tobacco products; the purchase, import or transfer from Belarus of petroleum products, potassium chloride products. The EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. Securities of large credit institutions or other institutions with more than 50% state ownership or control as of 29 June 2021 are also prohibited. The EU member states will take the necessary measures to limit the involvement of multilateral development banks in Belarus. The prohibitions shall be without prejudice to the execution of contracts concluded before 25 June 2021 or ancillary contracts necessary for the execution of such contracts.<br> <br> After the August 2020 presidential elections in Belarus, a political crisis began in the country. The authorities responded to the protests of citizens who disagreed with the election results with harsh repression and persecution. Since October 2020, the EU has already introduced three packages of (mostly targeted) sanctions against the Belarusian authorities.<br> <br> According to the Finance Ministry of Belarus, in 2021, an equivalent of $3.1 billion will be allocated to repay and service the external public debt, of which $3 billion in foreign currencies. The repayment of the principal debt will reach $1.9 billion; the interest payment servicing – $1.1 billion. Belarus’ external public debt calculated by the methodology of the Special Data Dissemination Standard of the International Monetary Fund amounted to $19.808 billion as of June 1, 2021. End<br> <br>
2021-07-09
Primepress
Belarus’ FinMin mulling borrowings in Russia, Asia, domestic market in medium term
“The imposed sanctions do not change the approaches previously outlined by the Ministry of Finance to the refinancing of public debt this year. Borrowing in the Eurobond market in 2021 was not originally planned, reads the statement.
Belarus expects $500 million in the second tranche of the Russian state loan in 2021, receipts from securities placed on the Russian and domestic financial markets, and a loan from the OPEC Fund for International Development for health care as part of the COVID-19 pandemic response.
The Finance Ministry says that repayment and servicing of the public debt is a priority over other payments from the national budget.
“International rating agencies have trust in the country as a reliable borrower. For instance, Standard & Poor’s believes that the sanctions imposed by the European Union will not put a significant pressure on Belarus’ balance of payments or the ability of the Belarusian government to make payments on the public debt. The agency affirmed the sovereign credit ratings of the republic at ‘B/B’,” says the ministry.
As previously reported, on June 25, 2021, the EU Council introduced sanctions against largest sectors of Belarus’ economy. The sanctions prohibit direct or indirect sale, supply, transfer or export to any natural or legal person, entity or body in Belarus or for use in Belarus of goods used for the production or manufacturing of tobacco products; the purchase, import or transfer from Belarus of petroleum products, potassium chloride products. The EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. Securities of large credit institutions or other institutions with more than 50% state ownership or control as of 29 June 2021 are also prohibited. The EU member states will take the necessary measures to limit the involvement of multilateral development banks in Belarus. The prohibitions shall be without prejudice to the execution of contracts concluded before 25 June 2021 or ancillary contracts necessary for the execution of such contracts.
After the August 2020 presidential elections in Belarus, a political crisis began in the country. The authorities responded to the protests of citizens who disagreed with the election results with harsh repression and persecution. Since October 2020, the EU has already introduced three packages of (mostly targeted) sanctions against the Belarusian authorities.
According to the Finance Ministry of Belarus, in 2021, an equivalent of $3.1 billion will be allocated to repay and service the external public debt, of which $3 billion in foreign currencies. The repayment of the principal debt will reach $1.9 billion; the interest payment servicing – $1.1 billion. Belarus’ external public debt calculated by the methodology of the Special Data Dissemination Standard of the International Monetary Fund amounted to $19.808 billion as of June 1, 2021. End