Financial credit to Belarus for strengthening the balance of payments (2014)
Budget support and/or balance-of-payments support
The ACF Council approved a US$ 3 billion financial credit to Belarus on June 4, 2011. The credit was to be released in six tranches during 2011-2013 based on the progress in implementation of of the Government’s Stabilization Program that aims at strengthening the balance of payments and increasing the competitiveness of Belarus’ economy. Financial terms of the Credit are in line with the standard terms of ACF for the middle-income member states. The loan is granted for a period of 10 years, including a three-year grace period, and carries a floating interest rate reflecting the price of funding Russia on international markets.
The first tranche in the amount of US$ 800 million was disbursed on 21 June 2011, after the Credit Agreement between the Eurasian Development Bank, as ACF Resource Manager, and Belarus became effective.
The second tranche in the amount of US$ 440 million was disbursed on 30 December , 2011, after e Belarus completed the prior conditions, approved by the Fund Council on 28 November, 2011.
The third tranche in the amount of US$ 440 million was disbursed on 15 June, 2012 based on the decision of the Fund’s Council. The Fund Council also approved a new Letter of Intent of the Government and the National Bank of Belarus, which includes the stabilization program measures for 2012, the implementation of which will trigger the disbursement of the fourth and the fifth tranches of the ACF credit.
The fourth tranche in the amount of US$ 440 million was disbursed on 31 January, 2013 based on the Fund Council’s decision.
The fifth tranche in the amount of US$ 440 million was disbursed on 30 April, 2013 based on the Fund Council`s Decision.
On 26 June 2013, the Fund Council approved the Letter of Intent of the Government and the National Bank of Belarus for 2013.
On December 27, 2013, the Fund Council postponed for six months consideration of the issue of providing Belarus with the sixth tranche of the financial loan in connection with the failure to comply with the ten indicators of the current stabilization program.
By the decision of the Fund Council as of November 27, 2014, the implementation of the Stabilization program supported by the financial cledit of the Fund was terminated without providing the sixth tranche.