The official reminded that the $1 billion loan was granted on 18 November 2011 to be repaid within one year. “18 November 2012 is the time when we should repay the loan in one go,” he said.
The official explained that the loan contract offers favorable conditions for six months after the loan was granted. However, conditions get worse after that, with the interest rate raised. “Therefore, once the money is available and the contract allows it, one can repay the loan ahead of time and we will do just that,” said Vladimir Semashko.
The money to repay the loan will come primarily from Belaruskali. It is a successfully operating enterprise, stressed the First Vice Premier. Last year potash fertilizers export earned $3.2 billion, which testifies to profitable operation of the company, remarked Vladimir Semashko. Besides, the government can now take part in repaying the loan thanks to the country’s foreign trade surplus this year.
“If the economy develops rather successfully, steadily, why do we need expensive loans?” wondered the First Vice Premier. “But it doesn’t mean that we will not take loans or that Belaruskali will not take another loan to repay the current one. But if it does, lending conditions will be much more favorable,” said Vladimir Semashko.
A credit agreement for Sberbank of Russia and the Eurasian Development Bank to allocate a $1 billion syndicated loan to the Belarusian company OAO Belaruskali for one year was signed in Minsk in November 2011. Sberbank’s share was $900 million, with the rest covered by the Eurasian Development Bank.
The Belarusian government guaranteed that the loan, the interest rate and other fees required to use the guaranteed loan will be paid.
The loan was allocated to Belaruskali for general corporate purposes, including the acquisition of proprietary shares by the company, acquisition of any securities, bonds or promissory notes issued or guaranteed by Belarus.
BPS Sberbank was authorized to service the guaranteed loan.