Minsk needs to refinance $1 bln debt to Russia EFSD, Moscow ready to help - Finance Minister Anton Siluanov

MOSCOW. Feb 16 (Interfax) - Russia is ready to help Belarus to refinance its public debt amid restrictions imposed from outside, Finance Minister Anton Siluanov said.

The United States imposed sanctions on the Belarusian sovereign debt in December that essentially banned its refinancing by U.S. investors. The sanctions are a sensitive issue that poses a direct risk to debt refinancing, Belarusian First Deputy Prime Minister Nikolai Snopkov said at the time. Belarus is due to repay $3.3 billion in external debts in 2022 and another $4.7 billion, interest included, in 2023. "The conclusion of a new stand-by program with the Eurasian Fund for Stabilization and Development, which envisages a Russian state loan, is being worked on. The requested sum is $3.5 billion, which will compensate for the shortfall in European debt refinancing money," Snopkov said.

Siluanov said the EFSD did not have $3.5 billion. "That's one thing. Secondly, yes, we can see the need, amid the restrictions that have affected our neighbor, to support them with the refinancing of the debt obligations that Belarus has before external creditors, above all Russia. Here we are ready to consider the proposals of our Belarus partners regarding help with refinancing debt to Russia," he said.

"We'll decide what format this will take - whether via the Eurasian fund or by interstate loans. But we have the resolve to help the Republic of Belarus," Siluanov said.

He said that first of all the principle debt to Russia and the EFSD might be refinanced - around $1 billion for the year. "This year's principle debt repayments to Russia and the EFSD are just under $1 billion. And here we are working with our Belarusian partners to refinance these debt obligations through our credit relationship. This concerns the current year," Siluanov said.

The Belarusian Finance Ministry confirmed it would like to refinance the debt to Russia. "We constantly interact with our Russian colleagues, the Finance Ministry is currently working on refinancing and repaying debt," a spokesperson told Interfax.

Belarusian external debt was $18.2 billion as of January 1, 2022, down $0.4 billion or 1.9% from the start of 2021, when adjusted for exchange-rate differences, the Finance Ministry has said.

Belarus borrowed the equivalent of $1.27 billion in 2021, and paid off $1.61 billion.

Overall public debt was $22.8 billion as of January 1, up 9% since the start of 2021.

The Finance Ministry expects foreign debt repayments in 2022 will be the equivalent of 10 billion Belarusian rubles or $4 billion at the current rate, 25% more than in 2021.