Russia to give Belarus $700 million loan ‘to strengthen friendly relations’

This year Russia will lend Belarus $700 million. As follows from the Russian government’s directive published on the official legal information portal, Minsk will be obligated to repay this loan in 10 years.

The funds will be allocated “towards the goal of further strengthening friendly relations” for the repayment of loans issued previously by Russia.

Minsk must make repayments twice a year, on April 15 and October 15, over 10 years. The payment amount will grow from 2.5% of the amount during the first few years, to 9.5% in April and October 2027. The tranches must arrive in the Russian accounts in either rubles or dollars.

RBC news agency writes that at the end of 2016, the total amount Belarus owed Russia amounted to almost $6.4 billion. Such numbers are cited by the Bank of Russia. In 2017, Minsk needs to return $741 million, but in January-April only $120 million was repaid.

Last week Lukashenko spoke about the danger of reestablishing a border zone on the border between Russia and Belarus.

  Russia, Belarus, loan