Kremlin refutes Lukashenka: loan to Belarus may not be done

The Kremlin does not confirm Lukashenka’s statement about a decision to give Belarus additional tranche of loan in February.

1 billion dollars were to be given additionally, RIA Novosti informs with a reference to a source in the Russia’s Presidential Administration.

“The heads of the central banks of the two countries have been instructed to study this issue, but the final decision hasn’t been taken,” news agency quotes the Kremlin’s representative.

On December 23 in a conversation with journalists A. Lukashenka said: during his talks with Dmitry Medvedev in Moscow on December 22 the Russian side has confirmed that in February the second 1 billion tranche of the loan would be given to Belarus for stabilization of the Belarusian ruble, BelaPAN informs.

An agreement to grant a loan of 2 billion dollars to Belarus in 2008-2009 was signed on November 13 in Moscow by Vice Prime Minister, Finance Minister of Russian Alexei Kudrin and Finance Minister of Belarus Andrei Kharkavets. The long term loan is given for 15 years with a with five-year grace period at LIBOR rate plus 3% annually.

The first 1 billion dollar tranche of the credit was received by the Finance Ministry of Belarus on November 18. It was announced after signing the agreement that the second tranche would be granted as soon as the two countries draw up an "action plan" for further cooperation and the introduction of a single currency. They agreed to do this until February 28, 2009.

In late 2007 Belarus received from Russia a $1.5 billion stabilization loan at LIBOR+0.75 percent for 15 years with the grace period of five years. Belarus requested the loan from Russia to pay for energy supplies.

The second loan is to be spent for supporting trade and payment balance of the country.