Minsk expected to borrow up to $1 billion abroad this year

The Belarusian government plans to borrow up to $1 billion abroad this year to cushion the effects of a sharp hike in the price of energy resources, Reuters reported with reference to Finance Minister Mikalay Korbut.

The minister expressed certainty that the country would manage to repay the loans as it did in the past. At present, he said, Belarus has no outstanding external debts.

Minsk is not going to obtain loans from foreign governments but is in talks with banks in Russia, Britain, the United State, Switzerland and some other countries on taking syndicated loans, according to the official.

Belarus, which plans to obtain a sovereign credit rating in the first half of this year, may issue eurobonds, long-term bonds nominated in a foreign currency, and is ready to sell up to 10 billion rubles worth of bonds in the Russian market in 2007, Mr. Korbut said.

Belarus' foreign debt is estimated at less than $850 million at present.

Belarusian Finance Minister Mikalay Korbut said that he did not rule out the possibility of the 2007 state budget being amended.

The budget spending could be reduced to obtain additional funds for compensating households and enterprises for higher energy prices that they have to pay this year, the official said in an interview with Reuters on Monday.

Mr. Korbut said that a target for the 2007 budget deficit, slated at 1.5 percent of GDP, would not be increased. “Our budget revenues and expenditures have significantly increased in recent times and we have room for maneuver,” he explained.

He expressed confidence that Belarus was able to survive the effects of higher energy prices without seeing its living standards dropping and GDP growing by less than eight percent as projected for this year.

“Things have become more complicated, but we are moving forward according to our own plans,” he said.

Mr. Korbut however revealed that the Belarusian government wanted to draw more foreign investment in 2007, noting that the country's policy on investment might even be revamped. “We are ready to let capital in our country in any form. But the conditions should be beneficial for both sides,” he stressed.

He expressed the opinion that Belarus would have a different economy in five years that would be in line with conditions to be set for it.