Lukashenka pawns country to Russian pawnbroker's office

Belarus and Russia has signed an agreement on granting a state credit of 1.5 billion dollars. The document has been signed by Belarusian Finance Minister Mikalay Korbut and Russian Vice Prime Minister, Finance Minister Alexei Kudrin. Sensational news is that Russia is considering a possibility to lend 2 billion dollars more.

A credit of 1.5 billion is given by Russia for a term of 15 years at LIBOR rate plus 0.75 %. As said by A. Kudrin, this credit costs about 6% today. He has also said that Belarus is given a 5-year grace period for payment of the principal amount of a loan. But interest is still to be paid over this time.

The money on this credit is to be received before December 31 this year and placed to the account of the Finance Ministry of Belarus in Belarus’ National bank.

In 2008 Russia will consider the possibility to grant Belarus a credit of up to 2 billion dollars. It has been stated after signing an agreement with Belarus by Russia's finance minister A. Kudrin.

"There is a request from the presidents. We have to analyse the issue during the course of next year," Alexei Kudrin told reporters.

He has underlined that the next credit is planned to be used for support of trade and balance of payment of Belarus.

“Belarusians should expect rise in gas price, transition to average European prices. The credit is promised to make this transition less painful. But for the Belarusian economy it would mean deferment of balloon payments and a possibility for Russia to use financial pressure in the future. It’s a payment for something, possibly for support of Russian anti-western plans in military sphere,” the international coordinator of the Charter’97 press-center Andrei Sannikov said.