Will Belarus' receive new tranche of EurAsEC loan?

Experts of the Eurasian Development Bank, which manages the Anti-crisis Fund of the Eurasian Economy Community (EurAsEC), are evaluating whether Belarus has met its conditions for receiving the fourth, $440-million tranche of EurAsEC's $3-billion stabilization loan.

A mission of the Eurasian Development Bank stayed in Belarus between October 15 and 20 and had meetings with officials of its finance and economy ministries, National Bank and other governmental agencies and representatives of international financial institutions, the press office of the Eurasian Development Bank told BelaPAN.

"After receiving an official report from the Belarusian government, the Bank will continue to evaluate Belarus' economic policy, including by holding consultations with government officials," the press office said.

The Anti-crisis Fund's board is expected to decide on December 5 whether to provide a new loan installment to Belarus.

Nadzeya Yermakova, head of the National Bank of Belarus, acknowledged on October 18 that the Belarusian government's talks with the Anti-crisis Fund and the International Monetary Fund about further financial assistance had run into difficulty.

"Of course, the talks are not easy, unfortunately," Ms. Yermakova said. "We would like them to understand us and we hope that they will. If they don't, we will have to cope with the matter ourselves."

Ms. Yermakova explained that the Anti-crisis Fund wanted the Belarusian government to tighten its monetary policy before it could be given the new tranche.

Approved by the board of the EurAsEC Anti-crisis Fund on June 4, 2011, the stabilization loan for Belarus was aimed at supporting the country's efforts to improve its balance of payments. The 10-year loan was to be disbursed in six tranches within three calendar years.

The loan has a grace period of three years and carries a floating interest rate set on the basis of the reference rates of the Russian Federation and Kazakhstan.

The first, $800-million tranche of the loan was made available to Belarus in June 2011. Another portion, $440 million, was provided in late December. Belarus received the third, $440-million tranche in mid-June 2012.

The lending arrangement requires the Belarusian government to sell at least $2.5 billion worth of state assets this year.