Belarus and China have signed an agreement on granting Minsk a loan of half a billion dollars, the Belarusian Ministry of Finance reports.
The signing took place in Shanghai on December 16. Finance Minister Maksim Yermalovich signed the agreement on behalf of Belarus. The agreement with the Shanghai branch of the China Development Bank provides for an urgent loan of 3.5 billion Chinese yuan, or about $500 million.
“The unprecedented nature of this deal indicates a new level of relations between the Republic of Belarus and the China Development Bank,” said the Ministry.
The loan is not linked to the implementation of any project and may be used to repay and service the public debt, maintain foreign exchange reserves, as well as facilite the development of bilateral trade between Belarus and China.
According to the decree of Alyakasndr Lukashenka, the Chinese loan will be used to repay foreign debt. It is assumed that the loan of $500 million from Beijing will be granted to Belarus for five years.
This year Russia has reduced lending to Minsk. The Ministry of Finance expected to attract $200 million of the last tranche from the fund of the Eurasian Fund for Stabilization and Development, as well as $600 million from the Russian government. But in the end, the Kremlin decided not to give money. In response, Alyaksandr Lukashenka even said that he had forbidden the Minister of Finance to take money from Russia.
