Page 27 - BELRptMar19

up to the Russian government to make the final decision," Yermolovich added.
In October 2018, the Russia-led Eurasian Fund for Stabilisation and Development (EFSD) allocated the sixth $200mn support tranche to cash-strapped Belarus from the lender's $2bn loan agreed with Minsk in 2016.
The allocation of the tranche followed reports that Moscow intends to suspend the allocation of new tranches from $2bn support package agreed between Minsk and the EFSD, as well as suspend negotiations on a new $1bn intergovernmental loan, which could be a painful blow for the reserves.
Meanwhile, Belarus faces a new economic crisis if Minsk fails to secure full compensation from Russia for losses triggered by the latter’s new energy taxation system (the so-called tax manoeuvre), the International Monetary Fund (IMF) said in a statement in January.
According to the Belarusian finance ministry, the country’s budget revenue losses from the tax manoeuvre in 2019 alone were estimated at BYN600mn ($300mn), and that the losses might total $2bn by the end of 2024.
On December 8, a spokesperson with Belarusian President Alexander Lukashenko said in a televised interview that Minsk already lost $3.6bn due to Russia's cut of energy subsidies to Belarus. Due to Moscow's 'tax manoeuvre' Belarus will lose extra $11bn within the next four years, the spokesperson added.
In November 2018, Yermolovich told journalists that Minsk should repay around $5.4bn of the state debt in 2019-2020. "Some of the $5.4bn will be refinanced. In the to-be-refinanced part $2bn will be raised as untied credit resources, which we are going to get abroad by floating the relevant bonds for a broad spectrum of investors," he said.
As of 1 February 2019, Belarus' external debt totalled $16.7bn, down by $0.2bn or 1.1% from the beginning of the year (taking into account differences in currency exchange rates), BelTA learned from the country's Finance Ministry. In January 2019, external state borrowings totalled $59.9mn, including $51.8mn borrowed from the Russian government and banks, $6.9mn from the International Bank for Reconstruction and Development (IBRD) and $1.2mn from the European Bank for Reconstruction and Development (EBRD). In January 2019, Belarus spent $299.2mn to repay the external debt, including $209.2mn paid to the Exim Bank of China, $90mn to the Russian government. As of 1 February 2019, Belarus' government debt totalled Br44.9bn, up by Br0.4bn or 1% from 1 January 2019. The internal government debt amounted to Br8.9bn as of 1 February 2019. Taking into account differences in currency exchange rates, the internal government debt decreased by Br8.7mn or 0.1% from the beginning of the year.
Near-term external financing risks have declined due to the pre-financing in 2017 of payments due in 2018 through market and official borrowing, and due to an increase in international reserves.
FX debt service is $2.6bn (not including Eurobond payment) in 2018,
which will be covered by a mix of multilateral financing, local market issuance, use of FX cash buffers and potentially a new international bond issuance. FX liquidity in the local market and FX government revenues derived from custom
27 BELARUS Country Report March 2019 www.intellinews.com