Belarusian Steel Works has issued bonds with total worth USD 240.5 million for a five-year maturity period at 7% per annum in order to refinance outstanding loans to the Belarusian banks. With this operation the enterprise aimed to reduce service costs of previously issued loans and to repay possible arrears. Other enterprises with a significant debt load are likely to copy the Steel Works’ practice. Banks may force enterprises to transfer their debt into bonds, so that enterprises could use the saved money to repay debts, including on taxes and duties, and for energy. The main risk in such a practice is that banks’ foreign currency accounts could be frozen if the population continues to withdraw its currency deposits, which may require additional resources from the parent banks and foreign markets.
