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Belarus seeking up to $2 billion out of EurAsEC`s anti-crisis fund

Belarus is seeking a loan of up to $2 billion out of the Eurasian Economic Community (EurAsEC)`s anti-crisis fund, Deputy Prime Minister Syarhey Rumas told reporters in Minsk on Wednesday, BelaPAN said.

"Work is underway with our counterparts," Mr. Rumas said. "We would like to obtain a long-term loan. We won`t take a short-term loan."

A loan application has already been filed, said Finance Minister Andrey Kharkavets, noting that Belarus` "quota" in the anti-crisis fund was about $1.7 billion.

The application is currently under consideration and a "commentary" by the Eurasian Development Bank is likely to be received in March, Mr. Kharkavets said.

It would be premature to talk about the final size of the loan, as the application is still being considered "at the expert level," he said.

Mr. Kharkavets also said that Belarus would suspend sales of Eurobonds, either in Russian rubles or dollars, because of the unfavorable situation in the international financial market.
The anti-crisis fund of the Eurasian Economic Community was established in June 2009 by the five EurAsEC member countries (Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan) and Armenia to help each other deal with the impact of the global economic crisis, ensure long-term economic stability and contribute to integration processes within the region. Russia, Kazakhstan and Belarus contributed $7.5 billion, $1 billion and $10 million, respectively, to the fund and Armenia, Kyrgyzstan and Tajikistan contributed $1 million each.

The Fund has two main instruments: financial loans and investment loans. Financial loans are granted to finance budget deficits as well as to support balances of payment or national currencies. Investment loans should be used to finance interstate investment projects.