EDB Opened Representative Office in Minsk
Minsk, 4 November 2010. On 3 November, the Eurasian Development Bank officially opened its representative office in Belarus. This is a well-formed result in the EDB’s interaction with its new member state.
Last summer Belarus joined the EDB and became its fifth member after Russia, Kazakhstan, Tajikistan and Armenia. At the same time an agreement was signed between the EDB and the Government of Belarus on the terms of the EDB’s presence in the country.
Belarus’ joining and the opening of the EDB’s representative office in Minsk enable the Bank to commence active operations in Belarus and grant Belarusian businesses access to EDB long-term financing.
“The EDB had started working on investment projects in Belarus before this country became member”, commented Igor Finogenov, Chairman of the EDB Executive Board. “Importantly, we have created preconditions for cooperation with the Belarusian business community. Presently we are implementing a project which directly relates to the Belarusian economy and promotes export by this country: since 2009, the Bank co-finances supply of a large batch of BelAZ lorries to a Russian energy company”.
The EDB’s head also said that currently the Bank considers a number of other projects which are important for Belarus. These projects will be implemented in the energy, mechanical engineering, telecommunications and chemical sectors and will have a strong impact on economic integration of the Bank’s member states. The Bank’s commitment under this project can exceed $500 million.
During Finogenov’s visit to Minsk a $99.8-million loan agreement was secured with Vitebskenergo for financing the construction of the Polotskaya Hydraulic Power Plant, and preliminary conditions of financing BPS Bank and Belgazprombank were approved. Two-year credit facilities will be opened for these Belarusian banks for the purposes of trade financing for a total of $25 million and $20 million, respectively. BPS Bank will also receive a five-year, $25-million loan for financing small and medium size business.
In addition, the EDB signed Memoranda on Cooperation with the Belarusian Ministry of Transport and Communications, Belenergo and Osipovichsky Wagon Works.