FinMin: Belarus seeks to expand credit cooperation with China

23 May 2019

MINSK - Belarus has been attempting to expand credit cooperation with China, Minister of Finance Maksim Yermolovich told reporters on May 22.

“We have signed a framework agreement with the China Development Bank. Now we are trying to facilitate credit and investment cooperation, which includes a larger-scale form of credit cooperation in the form of non-tied credits of the China Development Bank,” BelTA reports citing Yermolovich as saying.

In his words, the Finance Ministry has been working with Chinese partners in search for new sources of credit financing for Belarus.

It is known that Belarus has not ye received a seventh tranche worth $200 million of the stand-by credit facility provided by the Eurasian Fund for Stabilization and Development (EFSD).

“We have every reason to count on receiving the seventh tranche of the EFSD credit, as Belarus has fulfilled all the terms of the credit programme,” said Yermolovich. In his words, Belarus has implemented fairly deep structural reforms in the country’s economy: there are no public budget risks, the macroeconomic situation is stable, inflation stays within the projected bracket.

As previously reported, Russian Finance Minister Anton Siluanov announced in Apr 2019 that Belarus would obtain a U.S. $600 million loan from Russia to repay its current debt to Moscow, and could also get another $200 million tranche from the Eurasian Fund for Stabilization and Development (EFSD).

As previously reported, the Finance Ministry of Belarus and the Eurasian Development Bank (EDB, a resource manager for the Eurasian Fund for Stabilization and Development) on March 25, 2016 signed an agreement on a U.S. $2 billion loan to Belarus from the Eurasian Fund for Stabilization and Development (EFSD) managed by the bank. Russia is the principal donor of the EFSD. A total of $1.8 billion has been sent to Belarus under the programme so far.

It has been Belarus’ second credit programme with the EFSD. Belarus earlier received EFSD credit financing to support the 2011-2013 stand-by programme of the National Bank of Belarus and the government. The Eurasian Development Bank signed an agreement with Belarus on the allocation of a $3 billion loan in June 2011. The funds were supposed to be transferred in six tranches. Belarus never received the final sixth tranche of $440 million (due in Apr 2013) as the country failed to reach the targets of the stabilizing programme approved by the lender.


Ministry of Foreign Affairs of the Republic of Belarus