China agrees multi-billion dollar deals with Belarus
Chinese officials estimate the total value of agreements with Belarus at US$15.7 billion
China has extended US$3 billion credit to Belarusian companies and US$4 billion in commercial credit to Belarusian banks for financing business projects, the former Soviet republic's economy minister, Vladimir Zinovsky, said yesterday.
The credits, which appeared to include US$1 billion of loans to two banks announced on Sunday, were part of a raft of deals resulting from a visit by President Xi Jinping to Minsk, Moscow and Almaty.
At the same time, the Belarusian central bank announced a three-year currency swap agreement that will put 7 billion yuan (HK$8.9 billion) into its reserves and help with foreign debt repayments of US$4 billion due this year.
The former Soviet republic's economy has been badly hurt by currency volatility in Russia arising from the Ukraine crisis and a plunge in the price of oil. The International Monetary Fund forecasts the economy shrinking 2 per cent this year.
Zinovsky, quoted by the national news agency BelTA, said the US$3 billion credit to firms would be on favourable terms and the US$4 billion to banks would be earmarked for financing business projects.
China and Belarus on Sunday also signed a five-year potash supply memorandum of understanding, though volumes and prices were not disclosed.