The Russian aid: the Republic of Belarus turned to Russia for a loan

The Ministry of Finance of the Republic of Belarus appealed to Russia with a request to extend a loan in the amount of $ 600 million to cover the amount of payments on loans of the Russian government in 2019, which currently stands at about $ 630 million. At the same time, the Government of Belarus had previously applied for a loan of $ 1 billion in order to refinance all debts owed to Russia and the Eurasian Fund for Stabilization and Development (EFSD).

In 2017, the volume of official development assistance (ODA) provided by Russia to Belarus amounted to $ 2.25 million. However the loanissued by the Russian Government amounted $ 700 million in the same year for the next 10 years.

The decision on granting a loan has not yet been made. However, the provision of a loan can be used as a mechanism to resolve the issue of compensation for export duties and refusal of protectionism in relation to Belarusian industrial enterprises, which puts Russian companies in unequal conditions with Belarusian ones. Moreover, the provision of a loan can be a profitable solution for Moscow, since Minsk will ultimately be more likely to fulfill its obligations, albeit with a small time lag. Moreover, the funds for refinancing in the Russian budget laid.

It should also be noted that Russia participates in the provision of multilateral assistance to Belarus through the EFSD. So, in the period 2016 – 2018. EFSD provided $ 2 billion in seven tranches for the implementation of structural reforms and improving the quality of economic policy pursued by the National Bank of the Republic of Belarus. According to lenders, multilateral budget support will allow the country to go on the path of sustainable economic growth.

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