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Overview

CDB provides RMB 3.5 billion ‘emergency’ loan to Ministry of Finance of Belarus to service existing debts and shore up foreign exchange reserves

Commitments (Constant USD, 2023)$529,052,220
Commitment Year•2019Country of Activity•BelarusDirect Recipient Country of Incorporation•BelarusSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 16, 2019
Start (actual)
Dec 20, 2019
Last repayment (originally scheduled)
Dec 14, 2024

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Belarus Ministry of Finance

Loan description

CDB provides RMB 3.5 billion ‘emergency’ loan to Ministry of Finance of Belarus to service existing debts and shore up foreign exchange reserves

Grant element•10.1934%Interest rate (t₀)•4.8609%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On December 16, 2019, the Shanghai Branch of the China Development Bank and the Ministry of Finance of Belarus signed an RMB 3.5 billion ($500 million) ‘emergency’ loan agreement (ID № 3110201901100000011). The loan has a 5-year maturity length and an interest rate of 4.8609% The proceeds of the loan can be used by the borrower to repay previous loans, shore up the country’s foreign exchange reserves, and/or promote trade between China and Belarus. The Government of Belarus reportedly approached CDB with this loan request after an unsuccessful negotiation with the Russian Government for a similar ($630 million) balance of payments (BOP) loan. The CDB loan was fully disbursed only four days after its was finalized (on December 20, 2019). Belarus’s Ministry of Finance described the loan as ‘unprecedented’.

Staff comments

1. Multiple Chinese sources refer to the CDB loan that was issued as a ‘sovereign loan’. 2. This RMB 3.5 billion CDB loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. The loan's interest rate (4.8609%) is identified in the DRS. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0