Finance Ministry comments on WB’s decision to place loans to Belarus into non-performing status

The Finance Ministry commented on the decision by the World Bank to place the loans provided by the International Bank for Reconstruction and Development to Belarus into non-performing status, BelTA has learned.

The EU and the United States have imposed the sanctions on the National Bank, which is the paying agent of the Government of Belarus, prohibiting payments in euros and U.S. dollars. In light of these circumstances, presidential decree No. 93 was issued on 14 March 2022 to introduce additional measures to ensure the stable functioning of the economy.

"Within the scope of the powers granted by this decree, taking into account the unfriendly measures by foreign creditors, including the suspension of financing for the projects (including those in social sector) and (or) limiting the possibility of making payments in U.S. dollars and euros by the Government of Belarus and the National Bank as its financial agent, the Government and the National Bank adopted Resolution No. 212/10 "On temporary measures for the fulfillment of external public debt obligations" on 6 April 2022, the Finance Ministry said.

This document provides for a temporary procedure of servicing external public loans attracted from the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development and the Nordic Investment Bank in Belarusian rubles.

In April-October, the Finance Ministry fulfilled the obligations, in full and on time, under the loan agreements concluded between Belarus and the International Bank for Reconstruction and Development by transferring payments to a separate current account in Belarusian rubles opened in Belarusbank.

"The possibility of repaying debt obligations in foreign currency in the standard manner is currently limited due to the sanctions against Belarus," the ministry said.