Ex­ter­nal Bor­row­ing for Do­mes­tic Growth

Belv­neshe­conom­bank has raised over $900 mil­lion in for­eign loans for the Be­laru­sian econ­omy

Economy of Belarus - - BANKING SECTOR - Irina SNEGIREVA, Econ­omy of Be­larus Mag­a­zine

Rais­ing Funds

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

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