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The World Bank has transferred a $200-million Development Policy Loan to Belarus, Iryna Aleynik, spokeswoman for the international financial institution's office in Minsk, told BelaPAN.
The loan is intended to support the Belarusian government’s economic program aimed at addressing the social impact of the crisis and advancing the structural reforms to help enable a sustained economic recovery.
The World Bank's Board of Executive Directors approved the loan on December 1.
The single-tranche loan has a maturity of 16 years, including a six-year grace period.
The Development Policy Loan supports a program of reforms built around two pillars, according to the World Bank.
The first pillar aims at strengthening social assistance programs by making them more targeted to the poor, who are likely to be most affected by the impact of the global economic and financial crisis on the Belarusian economy.
The second pillar supports the government’s liberalization program to promote private investment and job creation, including measures such as the inspections decree which would lift a significant burden from businesses, price liberalization measures, including the removal of restrictions of trade margins for most products, the gradual elimination of turnover taxes, and the preparation of key legislation to launch the privatization process, the World Bank said.
Belarus joined the World Bank in 1992. Since then, it has borrowed $643 million for carrying out nine projects and received grant funds totaling $18 million for about thirty national programs. The World Bank currently finances four infrastructure projects in Belarus.