Eurasian Development Bank disbursed the fifth tranche of the credit of the EurAsEC Anti-Crisis Fund to the Republic of Belarus
Almaty, 30 April, 2013. Eurasian Development Bank (EDB) disbursed another tranche of the financial credit to the Republic of Belarus in the amount of US$440 million from the resources of EurAsEC Anti-Crisis Fund (ACF).
The decision to disburse the tranche was approved by the Fund Board on 30 April 2013 by way of voting in absentia, as all control targets of the fifth tranche as of 1 January 2013 were met, and the growth rates of credit to economy have slowed significantly during the first four months of the current year compared to the second half of 2012.
Despite considerable progress made by the Belarusian Authorities in the stabilization of the economic situation while implementing the Stabilisation Program supported by the credit of the Anti-Crisis Fund, the Manager believes that the continuation of tight monetary and fiscal policies remains the key factor in achieving sustainable and balanced growth of the Belarusian economy in the medium term.
Weakening of the economic policy in the second half of 2012 led to a rapid expansion of domestic demand, owing to high growth rates of credit to economy and unbalanced growth of incomes. This policy and still high inflation reduce the competitiveness of Belarusian exports and increase imports. In March of the current year inflation was 22.2 percent on the annualised basis, compared to 21.7 percent for the whole of 2012. The current account deficit for the first two months of this year was 7.7 percent of GDP, very close to its level in the second half of 2012.
The goal to further reduce inflation and to replenish
international reserves, especially against the background of peaking external
public debt payments
The ACF Council approved the extension of financial credit to Belarus in the amount of US$ 3 billion on 4th June, 2011. Taking into account the fifth tranche, Belarus has already received US$2.56 billion in proceeds from the said credit that aims to strengthen the balance of payments and to replenish international reserves of the country.
Additional Information
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of trade and other economic ties between its member states. EDB’ s charter capital exceeds US$1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://eabr.org/.
The EurAsEC Anti-Crisis Fund (ACF) amounting to US $8.513 billion was formed on 9 June 2009 by the governments of the same six countries. ACF’s objectives are to assist its member countries in overcoming the consequences of the global financial crisis, to ensure their economic and financial stability, and to foster integration processes in the region. ACF member countries signed the Management Agreement with Eurasian Development Bank, giving it the role of the ACF Resources Manager.
This English translation is provided only for the convenience of a reader. The Russian version is the only official version of this document. Any discrepancies that may arise between the translation and the Russian original have no legal consequences for parties engaged in the project or activity described in this document.
Resources Manager of EurAsEC Anti-Crisis Fund