Belarus guarantees $1bn loan repayment to Sberbank of Russia, EDB

The Belarusian government has issued a guarantee to Sberbank and the Eurasian Development Bank (EDB) that the $1 billion syndicated loan extended to Belaruskali for general corporate purposes, the interest and other payments for the use of the guaranteed loan will be made. The guarantee is laid down by resolutions No. 1633 and No. 1634 of the Council of Ministers of Belarus of 2 December 2011.

General corporate purposes, for which the $1 billion has been given to Belaruskali, include the acquisition of own shares, any securities, bonds or promissory notes issued or guaranteed by Belarus (a secured loan).

Resolution No. 1633 spells out that the government guarantee is issued after the loan agreement is signed between Belaruskali as a borrower, Sberbank of Russia as a facilitator, a lender, agent of the financing parties and security agent and the Eurasian Development Bank as a lender. The guarantee is issued due to the conclusion of the contract on the use and repayment of the guaranteed loan by the Finance Ministry, the Belarusian State Oil and Chemistry Concern and the open joint-stock companies Belaruskali and BPS-Sberbank.

BPS-Sberbank has been authorized to service the loan.

The Belarusian State Oil and Chemistry Concern has been authorized to secure the intended use of the loan, its timely repayment, the payment of interest and other payments related to the use of the loan.​
Printed from site www.government.by
Location Publication http://www.government.by/en/solutions/1740
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