Russia’s loan has not saved Belarus’ gold reserves

In September 2014, Belarus’ gold reserves slumped by USD 284.9 million to USD 6 billion.

Belarus has received a USD 1.55 billion loan from the Russian government, which she used to repay a previously raised bridge loan from VTB Bank. Belarus’ international reserves are expected to further languish due to negative trends on the Russian market reducing foreign currency earnings of Belarusian exporters. The last tranche from the EurAsEC Anti-Crisis Fund’s loan might be disbursed. The government might offer the population to buy the next issue of state foreign currency bonds, and interest rates on foreign currency deposits might go up. The Belarusian banking system may experience an outflow of Russian investors’ deposits due to an increase in the interest rates on foreign currency deposits in the Russian banks.