Russia's credit goes to debt recovery

Belarus immediately redirected money to repay the debut Eurobond issue, after adding a missing part from Gold and Foreign Exchange Reserves.

AFN reminds that Moscow granted money yesterday.

"On July 28, 2015 the Finance Ministry received a credit subject to the Agreement between the Governments of the Republic of Belarus and the Russian Federation on a State Financial Credit signed on July 24, 2015", the press service of the Finance Ministry informs.

On July 24 Belarus and Russia signed the agreement for a credit in Russian rubles, which equaled to $760 millions for 10 years with 4 years as a grace period.

"On July 28, 2015 the Finance Ministry, simultaneously with the last payment of coupon yield amounted to $43.75 million, sent funds to the payment agent (Deutsche Bank AG, London) for repayment of the debut government bonds, placed in the international financial market on August 3, 2010, equaled to $1 billion," the Financial Ministry of Belarus informs.

The government of Belarus does not confess the Russian financial assistance for debut Eurobond repayment, but its assistance at the last moment could hardly be accidental. The scheme is efficient for the Russia's government. It held off until Belarusian colleagues had no chance to spend money on other problems.

Today quoted price of debut Eurobonds at the Frankfurt Stock Exchange fell by 12 basic points to 99.12% of rate. Coupon rate of these bonds equals to 8.75% per annum.

The second issue of Belarusian Eurobonds maturing in 2018 is left. Within the day the quoted price of the bonds lost 100 basic points. It decreased from 99.5 to 98.5% of rate.

It is noteworthy that to recover Eurobonds Belarus had no add about $300 millions from Gold and Foreign Exchange reserves. It will surely negatively affect the situation, but the government had no other ways out.