BELARUS NEWS AND ANALYSIS

DATE:

17/12/2008

EBRD intends to increase financing of projects in Belarus in 2009

The European Bank for Reconstruction and Development (EBRD) is considering a possibility to increase financing of projects in Belarus in 2009, head of the EBRD Office in Belarus Valdas Vitkauskas told reporters in Minsk on December 17, reported BELTA.

a?sIt is quite possible that next year the financing will be increased. Yet everything will depend on whether we will find the projects in which we will invest,a?t he said. According to him, the EBRD is going to increase financing in all countries. a?sThis proposal is currently being discussed. Proceeding from this, we will decide on how much to allocate to Belarus. This will depend on the demand and preparedness of Belarusian entities to implement projects and attract funds. So far no concrete information on the amount is available,a?t Valdas Vitkauskas said.

He also noted that next year the EBRD will continue working in Belarus under the microfinance programme. a?sIt is difficult to say what share microfinance takes in our cooperation. As of today, we have $25 million approved. If this amount turns out insufficient we will consider additional possibilities,a?t Valdas Vitkauskas said.

The cooperation will be developed in other areas such as the banking and financial sectors. In the future the EBRD credit portfolio in Belarus is likely to include leasing and insurance companies.

The EBRD official confirmed the plans of the bank to expand its presence in Belarus through purchasing shares in new banks or increasing the Banka?Ts stakes in them. a?sIt is possible; however, it is early to concretize. The negotiations will clear up the situation,a?t he said.

Belarus-EBRD cooperation is based on the Directive for the strategy of Belarusa?T cooperation with the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development and the EBRDa?Ts strategy for Belarus in 2006-2008. The EBRD investments in the Belarusian economy amount to a'¿218.5 million. The total cost of the 21 investment projects is estimated at a'¿360.7 million.

Four major projects have been implemented in Belarus using the EBRD aid and government guarantees. Such projects as the development of Belarusa?T electric communications, creation of a horticultural products wholesale market in Minsk, modernisation of the Orsha cogeneration plant, reconstruction of M1/E30 motorway Brest-Minsk-border with Russia have been accomplished. The EBRD credit line implementation continues. In January 2007 the credit line was expanded by another $25 million as part of the EBRD strategy for Belarus in 2006-2008.

Source:

http://capital.trend.az/index.shtml?show=news&newsid=1373923&lang=en

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