Moscow refuses to reduce BelNPP loan interest rate

Deputy Finance Minister of Russia Sergei Storchak said that Minsk’s proposals to change the terms of the BelNPP loan couldn’t be accepted, RBC writes.

“Our Belarusian colleagues have been persistently asking us to revise the terms of the current agreement. Such consultations are in working order, nothing special is going on,” said Storchak.

“Extending the period of use of credit funds and reducing the interest rate at the same time is not in line with the financial theory, so we need to look for compromises on a different level,” said Deputy Finance Minister of Russia.

On February 9, First Vice-Premier of the Belarusian government Dzmitry Krutoy said that Minsk had requested to postpone the start of payments on the loan. “Plus, we are asking, not to have additional burden, to extend the term of this loan and slightly reduce the interest rate, bringing it in line with the contracts existing with Rosatom in other countries,” said Krutoy.

Under the terms of the loan agreement with Russia, Belarus is to start repaying the loan no later than April 1, 2021. As of January 1, 2019, Belarus used $3.4 billion of the $10 billion credit line from Russia.