Former chairman of the National Bank of Belarus, Stanislav Bogdankevich, stated that issuance and placement of Eurobonds by Belarus is Belarus' placement of loan-certificates. "You can place bonds of some large state-owned banks, but when we talk about Eurobonds, it is about the placement of debt obligations of the government of Belarus", the expert explained.
The doctor of economic sciences noted that when there are not enough resources to cover budget deficit, different sources can be used. But the most independent source, according to Stanislav Bogdankevich, which is under no obligations, is exactly Eurobonds. «The government issues bonds, they are bought on the terms, it states, but, of course, at the interest rate acceptable to a buyer», the expert said, Tomorrow of your country informs.
Moreover, Stanislav Bogdankevich noted that when a country gets loans from some state, bank, the IMF, the World Bank, Eurobank, European Innovation Bank, then it takes obligation to provide certain conditions.
«Usually, it is to maintain budget deficit at a certain low level, inflation, free market, state’s non-intervention in pricing — these are something demanded by mentioned financial institutions «, the ex-chairman of the National Bank explained.
«And here are no obligations: the government receives money and decides itself how to spend it, for what purposes», Stanislav Bogdankevich said. «Loans on free market, Eurobonds’ placement will be more expensive for Belarus, they are less profitable compared to IMF credits, and there must be effective projects to provide service of these debts and their repayment later».
Furthermore, the expert added that international financial institutions put forward a number of strict requirements for Belarus on structural reforms, the authorities do not want to implement on the eve of presidential campaign.
