Sberbank and Deutsche Bank will credit Belaruskali for USD 2 billion

The loan will be secured by export contracts and guarantees of 35% of the shares of the enterprise. This was announced by Head of Russian Sberbank German Gref at a meeting with Prime Minister Vladimir Putin on Friday.

Comment

Since the growth of public debt is currently not feasible, the government bets on the growth of corporate debt. The loan is issued on the condition of export contracts of Belaruskali, the only sustainable and stable generator of the foreign currency earnings in Belarus. The issue is that the loan needs to be repaid otherwise, 35% of the stakes of the enterprise will be given away for $ 2 billion only, which is times less than previously projected amounts. Therefore this loan is not a victory, rather a failure of the President to find cheap loans.