VTB Bank provides $2bn bridge loan to Belarus
14:16, — Economics
Russian bank VTB gave Belarus the promised bridge loan of $2 billion for the country's gold and foreign currency reserves.
“VTB Group has signed an agreement with the Government of Belarus to provide a short-term loan of $2 billion as the parties continue to develop their working relationship,” the bank's press service informs.
The short-term loan (for a period of up to six months) was given to the country as Russia carries out the procedures to issue a $2bn loan to Belarus.
VTB Bank gave Belarus a $450mn bridge loan in December 2013. Belarus was to pay it until the end of June. It can explain why VTB Bank agreed in June to provide 2 billion dollars despite the May arrangements to issue $1 billion.
Technically, VTB Bank can transfer 1.5 billion dollars to Belarus.
It's worth noting that the Russian bank does not comment on the December bridge loan.