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Russia to grant $700 mln loan to Belarus

The loan will be used to repay Minsk debt to Moscow

© Valeriy Sharifulin/TASS

MOSCOW, August 22. /TASS/. Russia will grant a public loan worth $700 mln to Belarus this year to repay its debt to Moscow, according to the Russian cabinet a draft agreement published on the website of the legal information on Tuesday.

According to the draft, "the Russian party is to give a state financial loan in the amount of $700 million in 2017 to Belarus to repay and serve its debt to Russia."

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At the same time, "the Belarusian party is to repay the loan on April 15 and October 15 of each year for 10 years, starting from April 15, 2018".

The facility will be granted in Russian rubles at the exchange rate of the Central Bank of the Russian Federation on the date of signing the agreement. At the same time, the loan debt will be recorded in US dollars.

"The loan is provided on the condition that the Belarusian party fulfills its obligations to pay interest and repay the principal debt on previously submitted state loans, as well as loans received by the Belarusian party from the Eurasian Fund for Stabilization and Development," the draft agreement says.

Minsk will receive the loan at a rate of LIBOR for six-month deposits in US dollars, plus the margin according to the established formula for its calculation.

The Finance Ministry prepared the draft agreement and agreed on it with the Foreign Ministry, the Economic Development Ministry and Vnesheconombank. The Russian Finance Ministry has been instructed to hold talks with Minsk and on reaching an agreement on the document to sign it on behalf of the Russian government.

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