Expert: Russian loan is very beneficial for Belarus
The Russian government has approved of the relevant draft agreement. The document was published on the official website of legal information. It should be recalled that in July Belarus already received from the Russian side a loan of $450 million. By the way, it was granted for up to 10 years.
As the financial analyst of the official partner "Alpari" in Minsk Vadzim Iosub explained, the loan has the conditions that are very favorable for the Belarusian side, despite the fact that the interest rate on the loan is floating.
Iosub: "Belarus will borrow money in Russia at the same rate that Russia itself borrows money on the market. The idea is that Russia gives us money at cost, with no additional markups. Conditions are quite favorable. There is a risk due to the non-fixed rate because of the possibility of its increase. Yes, we take the risk of a rise in interest rates in Russia itself. But given the fact that it is a large amount of money,given for long-term and considerable first payment grace priod - these are quite favorable conditions."
According to Vadzim Iosuba, Belarus needs this Russian loan to pay off the previous loan from the VTB Bank. The absence of this loan would mean for our country "the risk of default." Now Belarus is going to pay off the previous loan and save foreign exchange reserves "without negative consequences for the Belarusian economy."
Photo - Fotolia