Kudrin’s terms: Privatization, single exchange rate, commodity loan for NPP construction

A privatization programme for three years is a term for granting a $3bn loan to Belarus.

Russian minister of finance and deputy PM Alexei Kudrin told this to journalists on May 19, Interfax-Zaper reports.

“Belarus has enough assets to complement the lending program with the necessary amount of foreign exchange reserves, available in the next two to three years for stabilization of both the economy and monetary system. Our condition includes privatization within three years,” Kudrin told journalist Thursday.

As estimated by him, the amount of the assets to be sold was $7.5-9 billion. “If assets are not sold at this amount, Belarus may apply to the IMF, which will pose some difficulties, as the IMF offers stricter requirements, including structural reforms.

According to him, the country has to choose: either to sell assets, which it has enough, or to agree to IMF terms.

Kudrin noted that a final decision on privatization programme in Belarus, and thus a decision on issuing a loan, is to be taken at a session of the Anti-Crisis Fund of the Eurasian Economic Community (EurAsEC) on June 4.

The Russian minister of finance noted that Beltransgaz was discussed among the companies that could be privatized.

In case the credit approved, the interest rate for Belarus will be not lower than that for Russia and Kazakhstan, he said.

Single exchange rate of the Belarusian ruble

Belarus must stop running multiple exchange rates, Russia requires.

“I have some arrangements on this issue, but I cannot disclose them now,” Russian minister of finance Alexei Kudrin said in Minsk on Thursday answering if the terms of granting a credit include elimination of multiple exchange rates.

Kudrin ruled out a possibility of introducing the Russian ruble in Belarus at this stage.

“Introducing the Russian ruble at this stage cannot be a solution to the problem, especially an easy solution,” the finance minister said.

He noted that introduction of the common currency should be carried out in other, more favourable for Belarus economic and financial conditions.

As the deputy PM said, “Transition to a common national currency should be carried out in an absolutely stable situation, when absolutely clear and healthy economic parameters exist.” “I do not support this approach amid crisis,” he noted.

No cash for NPP construction

Russia is ready to give Belarus a loan for construction of a nuclear power plant only by granting a commodity loan for goods and services on a sum of $7 billion, Russian finance minister said.

“A total sum for goods and services may exceed $7 billion. A decision can be taken in summer,” Kudrin said in Minsk on Thursday.

The minister of finance also noted that there was another part of the loan to create the NPP infrastructure.

“This is a financial loan. A decision on it has not been made yet,” Kudrin said adding that the project supposes that the infrastructure will be created by Belarusian construction workers with Belarusian materials.