Russia to allocate USD 110 million to restructure external debt of Belarus

The Russian government has approved a draft agreement to grant Belarus a state loan in Russian roubles equivalent of USD 110 million. Funds will be provided for a 10-year period with a 4-year grace period. The loan will mean a timeout for Belarus: she will partially refinance current debt to Russia and slow down the reduction in gold reserves, but her bonds will become slightly less profitable. The Belarusian government will continue negotiations with other creditors to refinance debt on new terms. The loan is minimal and was meant to reduce Belarus’ appetites for financial aid. In addition, Russia by this increased pressure on Belarus to end confiscation practices at the Belarusian border with regard to transit goods by Russian companies.