The World Bank announced Monday (17 October) that all Belarusian loans granted by its main lending arm were placed in “non-performing” status. Overdue payments in excess of $68.43 Million were cited by the World Bank.
According to the bank, all IBRD loans to Belarus and guarantees were affected. The bank has stopped all Belarusian programs since 2 March.
The IBRD stated that the outstanding principal in Belarus of $967m represented 0.42% of all loans outstanding. According to the IBRD, being in non-performing status results in a loss of income of around $12.75 million.
Minsk has been unable to trade in foreign currencies since the invasion of Russia by Western sanctions. Belarus has now made Eurobond payments in Belarusian rubles, in response.
The multilateral development bank immediately stopped all programs in Russia and Belarus in March after Russia invaded Ukraine on 24 February.
The United States placed sanctions against Belarus in mid-2020 for a disputed presidential election. It had already stopped lending money to Belarus.
Last week’s flurry of military activity in Belarus raised concerns that President Alexander Lukasenko might send his army to support Russia’s war effort against Ukraine.
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