Eurasian Fund Won’t Grant Belarus $20 Mln Loan, Russia Refuses Too

Belarus can no longer claim to receive the seventh tranche of $200 million, the press service of the Eurasian Fund for Stabilization and Development (EFSD) said TUT.BY.

“The period of availability of a financial loan from the EFSD to the Republic of Belarus expired on 30 June 2019, and the Finance Ministry did not contact the Manager with a question about its further extension. Given this, discussion on the issue of the seventh tranche has no legal basis,” the bank said.

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Recall that since the end of April, Minsk had expected to receive the seventh tranche from the EFSD. At the end of the month, EFSD experts stated that Minsk was late in fulfilling the terms to receive the tranche by not submitting a new draft bankruptcy law to the parliament on time. The Ministry of Finance of Belarus assured that all the conditions were fulfilled on time.

Despite that later Minister of Finance of Russia Anton Siluanov assured that Minsk would receive both EFDS a $200 million loan and $600 million loan from Russia – it didn’t happen. It was explained by the pace of “integration processes” between Russia and Belarus. Note that the signing of the corresponding “road maps” is expected this December.

Belarus has already received $ 1.8 billion from the EFSD. Due to the fact that the terms of the loan were postponed, at the beginning of the year, the EFSD Council amended the reform program in the amount of 2 billion US dollars.

The Fund Council approved the provision of a financial loan to Belarus in the amount of 2 billion US dollars in 2016. It had to be granted in seven tranches during 2016-2018. The major objective of the credit is to support the Program of the reforms aimed at creating the conditions for the country to enter the path of sustainable growth.