Vnesheconombank opens $500m credit line for BelNPP project

The Government of Belarus, Russia’s Vnesheconombank and Belvnesheconombank signed a loan agreement on 15 May to grant Belarus up to $500 million to finance advance payments on the construction of the Belarusian nuclear power plant, BelTA has learnt.

On 19 December 2013 the Supervisory Board of Vnesheconombank decided in favor of opening a credit line to the tune of up to $500 million for up to eight years for the Belarus’ government.

Belarusian Prime Minister Mikhail Myasnikovich noted that both Belarus and Russia completed all the necessary interstate procedures and are ready to sign the loan agreement: “President Alexander Lukashenko approved the deal. As far as I know, Russia’s Premier Dmitry Medvedev has also sanctioned this landmark transaction,” the Belarusian head of government said.

He emphasized the importance of this deal. The credit line will help, among other things, reduce the outflow of foreign currency from Belarus and maintain stability on the domestic currency market.

$166 million of budgetary funds have already been provided for the construction of the Belarusian nuclear power plant; therefore, the loan of Vnesheconombank will come in handy, the Premier noted.

Vnesheconombank Chairman of the Board Vladimir Dmitriyev emphasized that the signing of this loan agreement is exceptionally important for the both countries. “This proves again our attitude to the bilateral cooperation and the strategic nature of our partnership,” he said.

Vladimir Dmitriyev said that the loan terms are optimal for the both parties. “The interest rates are the same as the world’s average; they are based on the interest rates of Vnesheconombank and the credit rating of the Republic of Belarus,” he noted.

He informed that Belarus will be able to use the loan in a couple of weeks.

Vladimir Dmitriyev said at the meeting that the bank will keep cooperating with Belarus within the framework of Vnesheconombank and Belvnesheconombank. “We view it as a strategic partnership and an important element of our policy in the Customs Union and our cooperation policy with the CIS member states in general,” he said.

Mikhail Myasnikovich thanked Vladimir Dmitriyev for the attention to the issues Belarus is dealing with.

The Russian state corporation Vnesheconombank and the Belarusian bank OAO Bank BelVEB are the agent banks in charge of servicing the Russian state export loan that has been granted to build the Belarusian nuclear power plant. OAO Bank BelVEB will act as a settlement bank.

The Belarusian nuclear power plant will boast two power-generating units with the total generating capacity of up to 2,400MW (1,200MW each). The Russian design AES-2006 was chosen to build the nuclear power plant. The design is fully compliant with international standards and the IAEA recommendations. The Russian merged company OAO NIAEP – ZAO Atomstroyexport (ASE) is the general designer and the general contractor for building the nuclear power plant.