Lukashenko: Interstate loans with a 7-8% interest rate are inadmissible

MINSK (BelTA) – It is inadmissible to take interstate loans with a 7-8% interest rate and is needed to minimize interest rates on foreign loans, Belarus President Alexander Lukashenko said as he heard out a report from Finance Minister Vladimir Amarin on 9 November, BelTA has learned.

The President pointed out the need to prevent increasing the foreign state debt and demanded to optimize it. First of all, it is necessary to minimize interest rates on foreign loans, especially this pertains to the loans which will be obtained in 2016. The optimization, in turn, should be aimed at searching new internal sources for the fulfillment of obligations. These are budget revenues and the internal financial market.

The head of state asked about the size of the state debt and the prospects of repaying it. Alexander Lukashenko focused on the following year because, in his words, this year the situation is clear. “I think the situation will improve in the future,” he said.

Speaking about loans, the President remarked that he has been recently asked to approve interstate loans with a 7-8% interest rate. Alexander Lukashenko stressed that such loans which can be repaid by tapping into the gold and foreign exchange reserves are inadmissible for the state; therefore, he rejects such documents. “It is normal when commercial loans have an interest rate of 7-8%. But I think it is inadmissible to tap into the gold and foreign exchange reserves to repay such expensive loans,” the President said.