MINSK, 29 June (BelTA) – A new procedure has been used to make June payments on eurobonds, the Belarusian Finance Ministry told BelTA.
The country had to pay the equivalent of $22.9 million, with the deadline set on 29 June (Belarus 2027).
Belarus made the previous payment on eurobonds in February. Back then the full sum in U.S. dollars was transferred to the paying agent – London-based Citibank. However, investors started complaining that they had not received the sums they were owed partially or in full. The paying agent said that everything had been transferred, the international clearing systems gave no official answer. Moreover, the clearing systems are now adjusting their operating rules to absolve themselves from any liability while quoting Western sanctions as the reason. The Finance Ministry explained there was no point in using the classic procedure to make payments in this situation.
This is why Belarus decided to honor debt commitments on eurobonds using its national currency. In accordance with the new procedure the Finance Ministry is going to transfer the sums payable in Belarusian rubles to special accounts in Belarusbank. Citibank has been granted access to the sums and can receive them in accordance with eurobond issue documents.
The Finance Ministry will also offer alternative forms of payments to investors ranging from early redemption and the floatation of a new issue to direct bilateral interaction.