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Agreement on $60m loan from IBRD ratified by lower chamber of Belarusian parliament

Economy 07.12.2017 | 13:55
An archive photo
An archive photo

MINSK, 7 December (BelTA) – Members of the House of Representatives of the National Assembly of Belarus ratified the guarantee arrangement between Belarus and the International Bank for Reconstruction and Development (IBRD) as part of the project meant to enable better access to financing for micro, small, and medium enterprises in Belarus during the session on 7 December, BelTA has learned.

The guarantee arrangement was signed in Washington, USA in October 2017. Belarusian First Deputy Economy Minister Dmitry Krutoi explained that one of the articles of the document stipulates that Belarus guarantees all the payments on the loan will be made on time and properly without any conditions in line with the loan agreement between OAO Development Bank of the Republic of Belarus (DBRB) and the International Bank for Reconstruction and Development as part of the project, which will expand access to finance for micro, small, and medium enterprises in the country.

In line with the agreement the Development Bank of the Republic of Belarus will borrow $60 million to implement the project. The Belarusian first deputy economy minister noted the project needed to be implemented in order to fulfill the main clauses of the national program on Belarus' social and economic development till 2020. Providing assistance with the development of small and medium private companies and enabling the most favorable conditions for doing business are key components of the program.

The availability of affordable financial resources is crucial to private business development in Belarus, noted Dmitry Krutoi. The resources are needed to scale up business operations and explore new business avenues. The $60 million loan will provide additional support, helping the Development Bank of the Republic of Belarus to develop its lending operations.

Some of the sum will be used to enhance the bank's own potential, introducing cutting-edge corporate management practices in the bank, assimilating advanced banking technologies, and hiring consultants, who will help improve work in the small business sector later on.

The Development Bank of the Republic of Belarus will hand over the money to Belarusian partner banks, which will be chosen in line with a special procedure and in compliance with the World Bank's requirements. The partner banks will then give out loans using their own criteria to judge the credit quality of borrowers.

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