Stabilization credit for Republic of Belarus (2016)

Belarus

Budget support and/or balance-of-payments support

Signed Financial credit

The provision of a financial loan to the Republic of Belarus in the amount of 2 billion US dollars in seven tranches during 2016-2018 was approved by the Fund Council on March 25, 2016. The major objective of the credit is to support the Program of the reforms of the Government and National Bank of the Republic of Belarus aimed at creating the conditions for the country to enter the path of sustainable growth through improving the quality of economic policy and structural reforms/ In accordance with the agreed methodology, the interest rate for the credit was fixed at 4,06% p.a., which reflects the yield of Eurobonds of RF and RK corresponding to  the average weighted maturity of the credit (7 years) as of 23 March 2016, weighted by the shares of the countries in the EFSD capital.

The first tranche in the amount of 500 million US dollars was disbursed to the Republic of Belarus on 30 March 2015 based on the appropriate decision of the Fund Council on satisfactory implementation of the tranche release conditions.

The second tranche in the amount of 300 million US dollars was disbursed to the Republic of Belarus on 1 August 2016 based on the appropriate decision of the Fund Council on satisfactory implementation of the tranche release conditions.

The third tranche in the amount of 300 million US dollars was transferred to the Republic of Belarus on 25 April 2017 based on the appropriate decision of the Fund Council, which envisages introduction of amendments to the Program, supported by the EFSD financial credit, to strengthen the release conditions of the fifth-seventh tranches by a number of measures aimed at increase of efficiency of the state property management. The necessity of amendments was caused by non compliance of the Republic of Belarus with three indicative targets of the tranche.

The fourth tranche in the amount of 300 million US dollars was transferred to the Republic of Belarus on 29 June, 2017 on the basis of the appropriate decision of the Fund Council on the satisfactory implementation of the tranche release conditions and inclusion in the Program, supported by the EFSD financial credit, additional control targets as the conditions for release of the sixth and seventh tranches.

The fifth tranche of $ 200 million was transferred to the Republic of Belarus on October 26, 2017 on the basis of a relevant decision of the Fund Council, providing the waiver for nonobservance of three out of five indicative targets and fulfillment by the authorities of two remaining targets as the precondition for the tranche release. The order of the President on transfer of 22 enterprises from the republican to communal ownership was issued on October 9, 2017. Letter of Intent of the Government and the National Bank of the Republic of Belarus, which includes a measure for adoption of the new law "On insolvency and bankruptcy" in the seventh tranche conditions as a control target was signed on 19 October 2017.

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