22 Dec 2009 14:36

World Bank transfers $200 mln loan to Belarus for development

MINSK. Dec 22 (Interfax) - Funds from a World Bank loan (Development Policy Loan, DPL) coming to $200 million have been received by Belarus, the World Bank's Belarusian office told Interfax.

"Yesterday evening the World Bank transferred the funds of a loan for the purposes of development worth $200 million. Today, on Tuesday, the money has already arrived to Belarus," World Bank representative said.

It was earlier reported that the World Bank's board of directors had decide to provide Belarus the first development loan on December 2, 2009. On December 15, Belarusian President Alexander Lukashenko approved the raising of this loan. In the World Bank's adjusted strategy for Belarus, an additional development loan is foreseen, which is worth $100 million.

It was earlier reported the World Bank is allocating funds in one tranche over 16 years with a six-year deferment of payment on the main debt.

The first DPL for Belarus was possible owing to a correction in the World Bank's strategy for the country and the successful implementation of a stand-by program by the International Monetary Fund.

The DPL supports a reform program, which is focused in two directions. The first of which is for the realization of a social assistance program while the second supports a government liberalization program for stimulating investment and creating jobs.