Russian Finance Minister: "Loans Provided to Belarus Also Benefit Russian Economy"

"Belarus Has No History of Repayment Moratorium"
"Will Help Create Jobs with Russian Companies"

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Russian Minister of Finance explained that the loan provided to Belarus is a transaction beneficial to Russia as well. Within Russia, public opinion is reportedly unfavorable toward the loan extended to Belarus for economic support amid the worsening economic situation caused by the COVID-19 pandemic and the sharp decline in oil prices.

On the 20th (local time), according to Russia's TASS news agency, Anton Siluanov, Russia's Minister of Finance, appeared on the state-owned Rossiya-1 TV and stated, "The loan to Belarus is beneficial to the Russian economy," adding, "Belarus is a very close trade and economic partner of ours, and providing loans to Belarus also helps Russian companies and jobs." He further emphasized, "Belarus is a very reliable borrower, and there has never been a case of delayed loan repayment."

The reason Minister Siluanov directly addressed the Belarus loan is interpreted as a response to growing public dissatisfaction regarding the loan provision amid the rapidly deteriorating Russian economic situation. In June, the International Monetary Fund (IMF) projected Russia's GDP growth rate for this year at -6.6%, revising it downward by 1.1 percentage points from the -5.5% forecast in April. The Russian Central Bank also announced a GDP growth rate forecast ranging from -4% to -6%.

Earlier, on the 14th, Russian President Vladimir Putin announced during a meeting with Belarusian President Alexander Lukashenko in the southern Russian resort city of Sochi that Russia would provide a loan worth $1.5 billion (approximately 1.7362 trillion KRW), sparking controversy within Russia. Accordingly, the Russian government plans to provide loans to Belarus in two installments: $1 billion this year and $500 million next year.

This content was produced with the assistance of AI translation services.