Fifth tranche of EFSD financial credit to be disbursed to the Republic of Belarus on compliance with prior conditions
Moscow, 13 October 2017. The Council of the Eurasian Fund for Stabilisation and Development (the EFSD Council) has adopted a decision to disburse to the Republic of Belarus the fifth tranche of the EFSD financial credit in the amount of US $200 million on condition that the Government and the National Bank meet two prior conditions of the Programme supported with the EFSD financial credit (the Programme). The prior conditions have been set for the tranche disbursement as the Republic of Belarus failed to meet several indicative conditions for the fifth tranche disbursement, of which for three such conditions waivers are granted.
To get the fifth tranche, Belarus’ authorities need, as soon as possible, get an instruction approved by President of the Republic of Belarus Alexander Lukashenko on transfer of at least 20 state-owned enterprises in republican ownership to municipal ownership, as well as get the Programme amended to re-introduce the measure related to adoption of the Law of the Republic of Belarus On Insolvency or Bankruptcy as a control target set for the seventh tranche disbursement. The fifth tranche will be disbursed to the Republic of Belarus after Eurasian Development Bank (the Bank is the EFSD Resources Manager) receives documentary evidence of Belarus’ compliance with the two conditions mentioned above. In view of the progress achieved by Belarus’ authorities in macroeconomic stabilisation, the EFSD Council has granted a waiver for two conditions set earlier for the fifth tranche disbursement: the broad money upper threshold and the limit on the share of the state-owned sector in the gross value added. Another waiver has also been granted for the measure related to amending the Law of the Republic of Belarus On Regulatory Legal Acts entailing introduction of the regulatory impact assessment framework to evaluate the impact of regulatory legal acts on the doing business environment. The waiver has been granted as the Parliament of the Republic of Belarus plans to discuss this draft law once again in its autumn session.
The Eurasian Fund for Stabilisation and Development (EFSD) amounting to US $8.513 billion was formed on 9 June 2009 by the governments of the same six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration in the region. The EFSD member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the EFSD Resources Manager.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
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