Russia to grant another $ 110 mln. loan to Belarus

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The loan will be provided in Russian rubles, in case the previously granted loans are timely paid

The Russian government has approved a proposal to provide Belarus with a new state financial loan of $ 110 mln. "To avoid the transaction and exchange rate risks associated with payments in US dollars, granting and repaying of the loan and debt servicing will be performed in Russian rubles," says the statement on the website of the Cabinet.

The main loan term is timely payments of the loans, previously granted to Belarus by Russia and the EurAsEC Anti-Crisis Fund.

In the beginning of 2014, Russia provided Belarus with a ten-year government loan in the amount of $ 450 mln. In September 2014, Medvedev signed a decree on granting a ten-year loan in the amount of $ 1.55 bln. for Belarus to repay and service the public debt and to replenish the foreign currency reserves of Belarus.

At the meeting held on March 26 2015, the Russian Prime Minister Dmitry Medvedev said that the loan tenure will be extended to help Belarus, which has found itself in "a difficult situation". "We helped our partners and we will continue doing that. We will, but our Belarusian friends should also erase the problems that arise in the spheres of trade and economy," said the Prime Minister during today's government session, instructing his First Deputy Igor Shuvalov to bring this to the notice of the Belarusian authorities.

"Now, we are rescheduling the loans, previously granted to the Republic of Belarus. We are prolonging them," Shuvalov said to the reporters later.

In mid-March 2015, Head of the IMF mission in Belarus David Hoffman said that the IMF could resume the financial assistance program provided to Belarus, in case the country tightens its economic policy and moves to the flexible exchange rate of the local currency.

Text and pictures by RBC