China to issue $1bn worth of loans for investment projects in Belarus

The Finance Ministry and the China Development Bank signed a memorandum of understanding on 26 September.

The document envisages two long-term loans to the total sum of up to $1 billion China will provide to Belarus.

The document was signed by First Deputy Finance Minister of Belarus Vladimir Amarin and Vice President of the China Development Bank Li Jiping. The Development Bank of Belarus and the China Development Bank also signed a framework agreement. The signatures under the document were put by Deputy Chairman of the Board of the Development Bank of Belarus Vladimir Dragun and Vice President of the China Development Bank Li Jiping.

According to the documents, the agreements envisage the allocation of funds for 15 years, including a five-year period of grace under the guarantee of the Belarusian government. The borrowers will include the leaders of the Belarusian banking credit and finance system, the Development Bank of Belarus and ASB Belarusbank.

The agreements determine basic principles of cooperation between financial institutions and state government bodies in funding joint Belarusian-Chinese projects implemented in Belarus and information cooperation between the countries. Money resources will be used to implement investment projects in transport, energy, industry, small and medium-sized business.

It is expected that these credit lines will take the loan and investment cooperation between Belarus and China onto a qualitatively new level. “We hope that the concluded agreements will allow implementing the most ambitious projects of our clients from both Chinese and Belarusian sides,” Vladimir Dragun noted.

The China Development Bank functions as an institution of development in the People's Republic of China providing middle and long-term financing in such priority areas as telecommunications, transport, agriculture, coal mining. The bank takes part in the implementation of big infrastructure projects in China and abroad.