Russia’s credit opportunities are limited, so Minsk has to comply with IMF terms

Last week, Russian Deputy Finance Minister Sergei Storchak said in Moscow that due to the budgetary constraints, in 2016 Russia would take a break in providing new loans to foreign borrowers. The Belarusian government planned to raise USD 2 billion from the Eurasian Fund for Stabilization and Development (EFSD), which was formed by 80% by Russian funds to refinance part of the payments on the public debt. According to the Finance Ministry, in 2016 Belarus is due to repay USD 3.3 billion to service her public debt, of which payments to foreign creditors will make USD 1.7 billion. Before Strochak’s statement, the Belarusian authorities were more optimistic about their chances to obtain a foreign currency loan from the EFSD as compared with a new loan from the IMF. The Kremlin is likely to delay a new loan for Belarus, prompting her to be more compliant with the IMF requirements.

Photo: BelTA