External Borrowing for Domestic Growth
Belvnesheconombank has raised over $900 million in foreign loans for the Belarusian economy
Belvnesheconombank services a big part of the country’s foreign trade and is actively involved in international capital transactions. Many foreign financial institutions opened credit lines for the Bank to implement investment projects of Belarusian companies.
This year we had to work amidst the financial instability on the domestic market. Nevertheless, Belvnesheconombank managed to accomplish one of the most successful fund raising projects: in June, the Bank received a syndicated loan worth RUB3.5 billion under
Having many years of experience and established reputation in the domestic and foreign financial markets, Belvnesheconombank makes a considerable contribution to expanding foreign economic links of the Republic of Belarus. The reputation of a reliable partner and consequently the trust of counterparties secure successful cooperation with national and foreign banks. Chairman of the Board of Belvnesheconombank Pavel Kallaur tells the Economy of Belarus Magazine about the Bank’s activities on the international financial markets.
an 8.25% interest rate for 365 days. I would like to note that the supply of resources exceeded the initial demand of RUB500 million, Pavel Kallaur says.
In January-september 2011, Belvnesheconombank continued servicing loans of German and Italian banks estimated at 65.26 million. These loans were raised both under the guarantees of the Belarusian government and without them and were meant to finance investment projects of Belarusian companies.
The Bank also acts as the agent bank of the government of Belarus to service the loan of the Japan Bank for International Cooperation and the Kuwait Fund for Arab Economic Development that were provided for the investment projects at Svetlogorsk Khimvolokno.
As of 1 October 2011, $26.5 million was provided by the Bank for Development and Foreign Economic Affairs (Vnesheconombank) to finance the investment project “Multifunctional complex with multistage construction of facilities on Pobeditelei Avenue in Minsk”.
In September this year, the Bank completed the work to prolong the framework credit agreement with Italy’s Mediobank until May 2015. The agreement was concluded under the guarantees of the government of Belarus and is estimated at $70 million. The funds will be spent on the purchase of cutting-edge Italian equipment and the related works and services.
Belvnesheconombank keeps cooperating with the European Bank for Reconstruction and Development (EBRD). In December