Government and National Bank can relax about international reserves for next two months

According to an agreement signed between Belarus’ Government and the VTB bank, a USD 2 billion loan was allocated for Belarus and will be listed in the gold reserves.

As a result, Belarus’ international reserves will show an increase by late June. The gold reserves will increase by less than the loans’ value. Partially, it will be spent on repaying international and domestic public debt and expanding loans in the public sector by granting preferential loans for enterprises. In addition, the government might issue Eurobonds, due to a favourable situation on the international market and the low cost of borrowing. The main risk regarding international reserves’ is a potential rapid decline in interest rates, which would increase the demand for foreign currency from individuals and businesses.