Vladimir Putin signs resolution on allocation of $500m loan to Belarus
In line with the resolution signed by Russian Premier Vladimir Putin, the Russian Federation will allocate a $500 million loan to Belarus.
During a session of the presidium of the Russian Government on March 5, Vladimir Putin authorized to allocate a loan to Belarus promptly. He also reminded that in 2008, Russia allocated a $1 billion stabilized loan to Belarus. Moreover, Gazprom paid more than $1.2 billion for Beltransgaz shares.
BelTA reported earlier, in October 2008 Russia took a decision to allocate a $2 billion loan to Belarus in 2008-2009. On November 18, 2008, Belarus received the first tranche of the loan ($1 billion). Russia's state loan is extended to Belarus for 15 years at LIBOR+3% with a five-year deferment on the principle debt.
According to Vice Premier, Finance Minister of Russia Alexei Kudrin, an agreement on Russia's $500 million loan for Belarus will be signed in the near future. Alexei Kudrin added that after amending the 2009 budget, Russia would allocate $500 million more to Belarus. According to the Belarusian Finance Ministry, the agreement is expected to be signed this week. The sides have settled all the issues regarding the loan.