Belarus asks Russia and Iran for loans

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4 October 2011

In Minsk, Belarus, the government is in close terms with Iran for a $400 million loan to help its economic crisis. Officials from President Alexander Lukashenko’s office stated that in the other hand Russia might lend the country from its state-controlled bank up to $1 billion backed up by shares from the Naftan oil refinery. The International Monetary Fund (IMF) will visit the country for progress on its reforms that may justify the $7 billion loan. According to officials from the IMF, the Belarusian ruble has lost three-fifths of its value against the dollar and its foreign reserves have fallen deeply putting the economy in crisis. If negotiations with the IMF fail, Minsk might turn back to Moscow, for which they have sought to access Belarusian assets such as the potash miner company Belaruskali. If this fertilizer company merges with Russia’s OAO Uralkali, it will create the largest potash company in the world. Belarus has become a more isolated state due to its controversial re-election of Mr. Lukashenko from Europe and the U.S.


SOURCE:

Belarus Looks to Russia, Iran for Loans



RELIABILITY: 9

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