The EDB extends the sixth tranche of the EFSD credit to Belarus

12 October 2018

Moscow, 12 October 2018. The Eurasian Development Bank (EDB), acting as the Resources Manager of the Eurasian Fund for Stabilization and Development (EFSD, Fund), extended the sixth tranche of the EFSD financial credit, totalling US $200 million, to Belarus. The country has already disbursed US $1.8 billion (including previous instalments) out of the total of US $2 billion envisioned to support its reform programme.

The conditions precedent for extending the sixth tranche was the nation’s fulfilment of 25 indicators, out of which five, including three control indicators, have not been met by the deadline (1 October 2017). The control measures that failed were aimed to support small and medium-sized enterprises by issuing a governmental resolution to implement regulatory impact assessment (RIA) of the draft legislation that influences the doing of business; create the institution of a business ombudsman; and stimulate the labour market by speeding up staff optimisation at state-owned enterprises and retraining those dismissed in line with market requirements. The key purpose of the indicative measures that have not been fulfilled was to restrain the inflationary pressure exerted by excess money supply.

The Fund’s Council decided to grant release with respect to all the indicators that have not been met since Belarus had managed to fulfil additional conditions for the provision of the sixth tranche agreed with the Resources Manager as recommended by the EFSD Expert Council. In particular, the joint guidelines of the Ministry of Finance and the Ministry of Economy on substantiating the draft legislation in financial and economic terms were supplemented with the requirement to implement RIA as one of the key mechanisms to reduce pressure on business development. In March 2018, the National Bank of Belarus amended its prudential regulations to constrain excessive consumer lending as one of the potential adverse factors that influences the dynamics of non-performing debts and worsens the balance of trade. 

Additional Information:

The Eurasian Development Bank (EDB) 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 mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 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 about the EDB at http://eabr.org/

The Eurasian Fund for Stabilization and Development (EFSD) amounting to US$8.513 billion was formed as the EurAsEC Anti-Crisis Fund on 9 June 2009 by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The EFSD assists its member countries in overcoming the consequences of the global financial crisis, ensuring their economic and financial stability, and fostering integration in the region. The EFSD member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the EFSD Resources Manager. 

The EDB Media Centre:

Alexander Savelyev +7 (985) 765 23 59 (Moscow)         

Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)

Sergey Gorbachev +7 (916) 727 22 00 (Moscow)         

pressa@eabr.org

www.eabr.org

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