Belarus counts on $500 mln Chinese loan

Belarus may receive another loan from the China Development Bank by the end of 2019, Belarus Finance Minister Maksim Yermalovich said on Thursday.

“A memorandum of raising a 3.5 billion yuan loan (over $500 mln) has already been signed. Now we are working on the borrowing terms,” state-run news agency BelTA quotes the minister.

In April, Belarusian envoy Kiryl Rudy and China Development Bank Chairman Zhao Huan signed an agreement on granting a $100 mln loan to our country.

China provides our country with tied loans which were allocated to the modernization of some industries, road construction, etc.

According to Yermalovich, Chinese money can be used to replace part of loans from Russia.
However, Belarus may pay a high price for them, well-known economist Leanid Zlotnikau warned in 2017. In his opinion, China provides our country with tied loans which were allocated to the modernization of some industries, road construction, etc.
“Extending them, our Chinese partners insisted that Belarus buy their equipment, hire their workers, work together on developing projects. We paid for all the things as well as the loan interest. But Chinese investment is very small, it is far less than that of Poland. Therefore, we cannot say that China has implemented lot of projects in Belarus,” he said.

In April 2019, Russia declared readiness to grant a state loan of up to $600 mln to Belarus. According to Finance Minister Anton Siluanov, the funds will be used for repayment of principal made on previously issued loans.

Loan to repay loans. Belarus to get $600 mln from Russia

belsat.eu

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