Republic

Russia gives $1.5bn state credit to Belarus

Russia has given a $1.5 billion state credit to Belarus. Finance Minister of Belarus Nikolai Korbut and Vice Premier, Finance Minister of Russia Aleksei Kudrin signed the corresponding intergovernmental agreement in Moscow on December 20. Aleksei Kudrin told media, the credit is provided for 15 years at Libor plus 0.75% per annum, with the payments postponed by five years. According to the official, at present Libor stands at around 5%. “The credit’s interest rate is market-based, however, it takes into account relations between Belarus and Russia within the framework of the Union State,” he said. Aleksei Kudrin also remarked, Russia supported Belarus by issuing the credit and the credit was issued under terms advantageous for Belarus. He qualified the credit as stabilising. “The money will help ensure Belarus’ trade turnover with Russia and other countries,” said the Russian Federation Finance Minister. Both Aleksei Kudrin and Nikolai Korbut confirmed, Belarus would receive the money as early as December 31, 2007. In turn, the Finance Minister of Belarus noted, the need for the credit had been brought about by growing energy prices. He underscored, the money would be used taking into account the nature the need for the credit had arisen from. He also said, the Belarusian side would pay out the credit and the interest on time.