The Eurasian Development Bank will provide a loan of EUR 141 million to the Belarusian Metallurgical Plant (BMZ) with a guarantee from the Government of Belarus.

On July 9, Minsk / Anna Kot - BELTA /. In 2013, the Eurasian Development Bank will be provided with a guarantee from the Government of Belarus for the repayment of a loan of 141 million euros issued to OJSC "Belarusian Steel Works - Management Company of the Holding "Belarusian Metallurgical Company", as well as for the payment of interest and other payments for the use of this guaranteed loan. This is stipulated by Resolution of the Council of Ministers of Belarus No. 583 of July 4, 2013, officially published today on the National Legal Internet Portal, reports BELTA.

The loan is issued for a period of 10 years and is intended to finance an investment project for the organisation of rolled products production with the construction of a small-section and wire rolling mill.

The fee for the provision of the government guarantee is paid once in the amount of 0.01% of the guaranteed loan amount. The guarantee is issued after the conclusion of a loan agreement for the provision of a non-revolving credit line between the Eurasian Development Bank and OJSC "Belarusian Steel Works - Management Company of the Holding "Belarusian Metallurgical Company", and an agreement on the procedure for the use and repayment of the guaranteed loan between the Ministry of Finance, the Ministry of Industry, OJSC "BSW - Management Company of the Holding "BMC" and OJSC "ASB Belarusbank".

OJSC "ASB Belarusbank" is authorised to service the guaranteed loan, charging a commission fee for servicing operations at a rate not exceeding 0.2% per annum of the guaranteed loan amount.

The Ministry of Industry will act as a guarantor for the fulfilment by OJSC "BSW - Management Company of the Holding "BMC" of its obligations for the repayment of the guaranteed loan, payment of interest and other payments thereon, and will conclude a suretyship agreement with the Ministry of Finance. The Ministry of Industry is also instructed to ensure the implementation by OJSC "BSW - Management Company of the Holding "BMC" of the investment project, the targeted use of the guaranteed loan funds, its timely repayment, and the payment of interest and other fees for its use.

Furthermore, in accordance with Resolution of the Council of Ministers No. 584 of July 4, 2013, also published today on the National Legal Internet Portal, OJSC "ASB Belarusbank" will be provided with a government guarantee in 2013 for the repayment of the principal debt amount of EUR 142.8 million under a loan issued for a term of 10 years by this bank to OJSC "BMZ - Management Company of the Holding "BMK" for financing an investment project on the organization of rolled products production with the construction of a small-section and wire mill, with interest for the use of the loan charged at no more than 8.5% per annum. The fee for the provision of the guarantee will be paid once at the rate of 0.01% of the loan amount. The Ministry of Finance is instructed to formalize the government guarantee after the loan agreement is concluded.

The Belarusian Metallurgical Plant (OJSC "BMZ" - Management Company of the Holding "BMK") was founded in 1984. The enterprise specializes in the production of cast billets, shaped, section and reinforcing rolled products, pipes, steel cord, RMML and other types of wire. Shipments of commercial products outside the republic account for more than 80% of the production volume.

The Eurasian Development Bank is an international financial organization established by Russia and Kazakhstan in January 2006 with the aim of promoting the development of the market economy of the participating states, their sustainable economic growth and the expansion of mutual trade and economic ties. The authorized capital of the EDB exceeds $1.5 billion. The participating states of the bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

The history of Belarusbank began in 1922. Today, it is the largest universal financial and credit institution in the country, offering its clients more than 100 types of banking services and products. OJSC "ASB Belarusbank" is the parent organization of the banking holding. The share of the Republic of Belarus in the authorized capital of the bank is 97.98%.-0-

News of Belarus (BELTA)