MOSCOW (Reuters) – Russia will allow Belarus to retain debt bills totaling $1. 4 billion over 10 years, while setting a constant interest rate, in line with spending approved by Russia’s reduced parliament space, or Duma, on Tuesday.
Earlier this year, Belarus asked Russia to restructure and refinance Minsk’s debt in 2022 and Moscow would move all payments, buybacks and debt service maturing between March 2022 and April 2023 to 2028-2033, says Timur Maksimov, Russia’s deputy finance minister, Douma.
Russia would also set the interest rate at 12% annually instead of a floating rate pegged to yields on OFZ bonds in Russian rubles used in the past, he added. According to the law, the bill will have to pass the third reading, be approved by the agreement with the parliament space, and then be signed by President Vladimir Putin.
Belarus is Russia’s best friend in what the Kremlin calls the “special army operation” in Ukraine unveiled through Moscow in February.
(Reporting through Elena Fabrichnaya; Editing by Tomasz Janowski)
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