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Belarus’ loans to make up $2.2bn in 2011

MINSK, 7 September (BelTA) – In 2011 Belarus’ new loans will total $2.2 billion, Finance Minister Andrei Kharkovets said as he presented the draft budget 2011 on 7 September.

“A new loan plan for 2011 is making up $2.2 billion,” the minister said. The major aim is to upgrade the economy and ensure the country’s economic security in terms of gold and forex reserves. “State debt midterm management strategy is meant for satisfying the state’s financial needs for sustainable economic growth. The amount of the state debt is kept on an economically safe level,” Andrei Kharkovets stressed.

The average interest rate of Belarus’ foreign debt makes up 3.74% per annum, with the average 6.3-year delay in payment. Untied loans account for 85.4% of the loan portfolio, with 14.6% of those tied. The bulk of lending is made by the IMF (40.7%), Russia (38.4%), China (nearly 9%).

Tied loans of China ($1 billion) and the World Bank (almost $119 million) will be put in the implementation of large-scale investment projects in energy system upgrading. The total cost of the projects is $913 million. The funds will be used to set up new manufactures. In particular, Andrei Kharkovets named the construction of a sulphate bleached cellulose plant at the Svetlogorsk pulp and cardboard works, a plant of industrial housing construction, a soda ash manufacture in Mozyr District. 

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