Identifier
Created
Classification
Origin
08VILNIUS352
2008-05-13 10:33:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vilnius
Cable title:
BELARUS: REGIME DEMANDS BORROWING BY STATE-OWNED BANKS
how-toVZCZCXRO3083 RR RUEHLN RUEHVK RUEHYG DE RUEHVL #0352 1341033 ZNR UUUUU ZZH R 131033Z MAY 08 ZDK FM AMEMBASSY VILNIUS TO RUEHC/SECSTATE WASHDC 2284 INFO RUCNCIS/CIS COLLECTIVE RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHVEN/USMISSION USOSCE 0224 RUEHBS/USEU BRUSSELS RHMFISS/HQ USEUCOM VAIHINGEN GE RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS VILNIUS 000352
AMEMBASSY MINSK SENDS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN PGOV BO
SUBJECT: BELARUS: REGIME DEMANDS BORROWING BY STATE-OWNED BANKS
UNCLAS VILNIUS 000352
AMEMBASSY MINSK SENDS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN PGOV BO
SUBJECT: BELARUS: REGIME DEMANDS BORROWING BY STATE-OWNED BANKS
1. (U) In an effort to increase investment, the National Bank of
Belarus recently ordered the country's banks to attract at least USD
2.7 billion worth of loans and direct foreign investment in 2008.
According to Statistics Ministry data, the foreign debt for Belarus'
banking sector grew 73 percent in 2007 to USD 2.57 billion.
2. (U) The country's largest bank, state-owned Belarusbank,
recently reported that it is unable to pay off many of its
creditors. Its debt to foreign banks and financial institutions
grew by USD 40 million in the first quarter of 2008 and now amounts
to USD 239.6 million. The bank announced plans to attract USD 800
million in new foreign funds this year in part by issuing USD 300
million worth of Eurobonds and by sale of up to 15 per cent of its
stock to foreign investors. However, its recent track record of
late repayments may hinder these efforts this year.
Comment
--------------
3. (SBU) With a growing trade deficit and a state budget under
pressure, the GOB sees foreign credit as a lifeline. While it has
already received USD 1.5 billion in sovereign credit from Russia and
seeks USD 2 billion more this year, its most recent attempts to
attract credit to state-owned banks and firms are likely to prove
less successful. Like a good soldier, the National Bank will
implement presidential instructions, but has made little effort to
determine the viability of the debts that banks assume or the
feasibility of the projects they fund.
MOORE
CLOUD
AMEMBASSY MINSK SENDS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN PGOV BO
SUBJECT: BELARUS: REGIME DEMANDS BORROWING BY STATE-OWNED BANKS
1. (U) In an effort to increase investment, the National Bank of
Belarus recently ordered the country's banks to attract at least USD
2.7 billion worth of loans and direct foreign investment in 2008.
According to Statistics Ministry data, the foreign debt for Belarus'
banking sector grew 73 percent in 2007 to USD 2.57 billion.
2. (U) The country's largest bank, state-owned Belarusbank,
recently reported that it is unable to pay off many of its
creditors. Its debt to foreign banks and financial institutions
grew by USD 40 million in the first quarter of 2008 and now amounts
to USD 239.6 million. The bank announced plans to attract USD 800
million in new foreign funds this year in part by issuing USD 300
million worth of Eurobonds and by sale of up to 15 per cent of its
stock to foreign investors. However, its recent track record of
late repayments may hinder these efforts this year.
Comment
--------------
3. (SBU) With a growing trade deficit and a state budget under
pressure, the GOB sees foreign credit as a lifeline. While it has
already received USD 1.5 billion in sovereign credit from Russia and
seeks USD 2 billion more this year, its most recent attempts to
attract credit to state-owned banks and firms are likely to prove
less successful. Like a good soldier, the National Bank will
implement presidential instructions, but has made little effort to
determine the viability of the debts that banks assume or the
feasibility of the projects they fund.
MOORE
CLOUD