Is Russia granting loan in exchange for Belarusian enterprises?

Deputy minister of finance of Russia Dmitry Pankin told requirements for granting a loan for Belarus.

“We’ll give one billion dollars in November this year and one billion dollars in 2009 after the adoption of amendments to the federal budget for 2009. These funds will be allocated in the first quarter of 2009. Credit conditions are still being discussed. They will be close to market ones. The credit is being given for 15 years with a five-year privileged period of payments of the main debt. We plan that these credits will be connected with the adoption of a plan of joint actions where measures of economic character, which the Belarusian and Russian sides will take, will be defined. Issues of the currency rate and an access of Russian companies to the Belarusian market will be recorded in it. It will also include issues of privatisation in Belarus and a balance of payments. That is, we plan to adopt programmes of action in the economic field,” the Russian officials told in an interview to PRIME TASS.

“At the first stage, we plan to agree on a memorandum on granting 2-billion loan, to agree on a joint plan outlining issues of balance of payment, currency rate, privatisation, budget balance. Then an agreement on giving 1 billion dollars will be signed. We plan to do it in November,” he said.

Speaking about discussions of Belarus’ entrance to the Russian stock market with placing of bonds, Pankin said:

“This issue hasn’t been removed. However, it is clear that it is impossible to place securities of Belarus at the current market. This issue is not being discussed and won’t be discussed, probably, until the situation at the financial market is settled down. It’s doubtful that it will take place in 2-3 months.”

Answering a question if the loan is connected with imposing Russian rouble as a common settlement and reserve currency, the official said:

“Details haven’t been coordinated yet. We understand that we need to discuss using the Russian rouble in mutual trade. We haven’t agreed yet on the final formulation of these issues.”