Expert: Belarusian government has problems repaying Chinese loans

He recalled that 15-18 billion dollars had been obtained and asked how those funds were being spent, how much of them had been received and what projects were being implemented. 

Economist Leanid Zlotnikau is convinced that the government has a problem in this regard. Here is what he said in his commentary to Euroradio: 

"There are problems with loan repayment, because the investments had weak returns. Either that or none at all. Let's take, for example, the reconstruction of cement plants. Nearly a billion dollars was invested there. But it turned out that there was no return on the money. But the loans have to be repaid, there should be income to pay the interest. You should also be able to leave something for yourself. What's was the point then to take the loan?" 

According to the expert, out of 15-18 billion of Chinese loans our country has spent about 6-7 billion. The money was spent mostly on the modernization of the industry (including cement production), construction of new and reconstruction of old power plants, as well as building of roads and road junctions. According to Zlotnikau, of all this the economy started to profit mostly from the energy industry. Belarus has not received any dividends from other spendings of Chinese billions. 

Now the loans have to be repaid. This explains why Alyaksandr Lukashenka expects a response to the question how these businesses are running. 

Photo - Fotolia