Business news

$100m from EDB to finance Belaruskali’s floating capital, investment programs

MINSK, 15 May (BelTA) – The Eurasian Development Bank (EDB) will allocate $100 million for the sake of financing floating capital and an investment program of OAO Belaruskali. The relevant credit agreement was signed in the Seat of Government on 15 May in presence of Prime Minister of Belarus Sergei Rumas, BelTA has learned.

Sergei Rumas remarked that the EDB has a good history of credit relations with the Republic of Belarus. So far the sides have implemented 30 projects worth a total of about $1 billion. According to Sergei Rumas, today's credit agreement will give a new impulse to cooperation. “More than six projects in various sectors are in the pipeline now. Today I would like to exchange opinions about these projects. Maybe you can see some other industries or areas where we could work together,” the prime minister said.

In turn, EDB Chairman of the Board Andrei Belyaninov noted that the credit agreement with Belaruskali had been signed within a record short period of time. He said he was confident that it was only the beginning of a long road of cooperation with the Belarusian company. The bank intends to continue financing Belaruskali’s investment programs on mutually beneficial terms.

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with a view to facilitating the development of market economies in the member states, their sustainable economic growth, and the expansion of mutual trade and economic ties. The member states of the bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.

At present the EDB is considering investment projects of Belarusian industrial companies. The projects are supposed to modernize existing manufacturing facilities and create new ones, including using the fifth and sixth technological paradigms. Vigorous cooperation with Belarusian banks is in progress. The EDB has signed syndicated lending agreements with Belgazprombank, Belarusbank, and other banks. Credit lines have been opened to finance trade and support small and medium business. Negotiations on the EDB’s contribution to Belinvestbank’s charter capital are in the active phase.

The public joint-stock company (OAO) Belaruskali is one of the world’s largest manufacturers of potash fertilizers and is the CIS’ largest. The company is busy implementing a large-scale project to build the Petrikovsky mining and processing factory, which will help the company’s increase its output capacity.

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