Loans in exchange for privatization

Minsk is expecting first tranche of a credit from the anti-crisis fund of the Eurasian Economic Commonwealth. Kiryl Koktysh, a Belarusian political scientist, thinks that Belarus can now expect financial support delivered step by step. This means, that if Belorussian government does not meet its commitments, it will not receive next tranche of credit. – This is the manner in which the dealings between Russia and Belarus will be solved from now on – he added.

According to the Russian Finance Minister, Alexiey Kudrin, Belarus will receive within next three years credit worth 3 billion USD. The first tranche of 800 million USD is to be paid in the near future, and further 400 million USD before an end of the year. The debt is to be paid off in installments within 10 years, with the 4.1% annual interest rate. Kudrin stressed that the basic condition for receiving the credit is conducting a privatization by Belarus worth 7.5 billion USD over next three yeares.

When IMF provided a loan to Belarus in 2009, it was also conditioned on conducting privatization. However, Belorussian authorities offered for sale only companies which were not attractive to foreign investors.

Mr. Koktysh thinks that the chances of the West providing economic assistance to Belarus are rather slim, in the context of notorious human rights violations in Belarus. – The IMF can help Belarus only if the situation becomes critical. In such situations the Fund would pay only to benefit from it. For example, to prevent destabilization which would affect Europe in terms of fuels transit. – he added.


See also