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Belarus appears interested to obtain another loan from EurAsEC, official says

 

Belarus appears interested to obtain one more loan from the Anti-crisis Fund of the Eurasian Economy Community (EurAsEC), Alisher Mirzoyev, head of the Fund’s social and economic policy department, told BelaPAN.

The Fund’s decision on the possible loan application would depend to a large extent on the implementation of the current loan program for Belarus, Mr. Mirzoyev said.

It is very important for the Fund to see that the stabilization of the Belarusian economy is not a temporary phenomenon, he said.

“Structural reform should be the priority of the possible new loan program,” Mr. Mirzoyev said. “Given the current economic situation in Belarus, such reform could not be efficient without macroeconomic stability. That is why the implementation of the current loan program is so important.”

Approved by the board of the Anti-crisis Fund on June 4, 2011, the $3-billion stabilization loan for Belarus was aimed at supporting the country’s effort to improve its balance of payments. The 10-year loan was to be disbursed in six tranches within three calendar years. The loan has a grace period of three years and carries a floating interest rate set on the basis of the reference rates of the Russian Federation and Kazakhstan.

The first, $800-million tranche of the loan was made available to Belarus in June 2011. Another portion, $440 million, was provided in late December 2011. Belarus received the third tranche in mid-June 2012, the fourth one in January 2013 and the fifth one in April. The final tranche is expected to be transferred to Belarus at the end of the year.

The Eurasian Development Bank (EDB), which administers the loan, reported last week that Belarus had failed to meet five indicative targets that it had agreed upon with the Anti-crisis Fund to receive the fifth tranche.

The failure to meet the targets “significantly diminished the effects of the stabilization program and may lead to a loss of its positive results,” the report said.

According to the EDB, the failure to meet some of the targets resulted from a loosening of monetary policy. // BelaPAN