ANNOUNCED AS TEMPORARYNo
On 15 May 2015, the Council of Ministers of the Republic of Belarus (according to Decree No. 413) approved the conditions for issuance (without actually issuing) a state guarantee for the purchase of 8 locomotives.
According to the credit scheme, the company 'Belarussian Railways' would take a loan from ExIm Bank of China in order to finance the purchase of the locomotives. The parameters of this credit deal, specified in Decree No. 413 are as follows:
n Outstanding principal: 46 687 420 USD
n Purpose: purchase by 'Russian Railways' of 8 locomotives, including spare parts
n Maturity: not more than 12 years
n Beneficiary of the state guarantee: ExIm Bank of China
Decree No 413 stipulates that the state guarantee is to be issued by the Government of Belarus after the signature of the credit contract between 'Belarusian Railway' and ExIm Bank of China. Since this condition was complied with, as a next step, Decree of the Council of Ministers No. 422 of 31 May 2016 approved the actual issuance of the state guarantee in favour of ExIm Bank of China, related to a loan it granted to the state railway company 'Belarusian Railway'. The state guarantee is to cover the outstanding principal of the loan plus additional costs, such as interest rates but the official documents do not disclose its exact maturity date.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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