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Business/Finance See other Business/Finance Articles Title: China, Belarus agree US$1 billion in bank loans, sign potash memorandum SCMP China signed on Sunday a five-year memorandum on Belarussian potash supplies and extended loans totalling US$1 billion to Belarussian banks, part of a raft of deals resulting from the visit of President Xi Jinping to Minsk, Moscow and Almaty. Russia, Belarus’s closest ally, has been shifting its economic focus eastwards as ties with the West fray over the Ukraine conflict. Xi praised Belarus for its foreign policy during the crisis, which saw a ceasefire deal brokered in Minsk in February. “You’ve actively mediated in resolving the crisis,” he said in a briefing after the deals were signed.Under one of about 20 deals signed on Sunday. China’s state development bank is providing its equivalent Belarusian lender US$700 million in low-interest credits to be repaid within 15 years. China Development Bank also agreed to extend commercial Belarusian lender ASB Belarusbank credit worth US$300 million. The two countries also signed a five-year memorandum of understanding for Belarus to deliver potash, a fertiliser. Belarussian President Alexander Lukashenko said the deals heralded a commitment to cooperation between the two countries. “We agreed that we will actively support each other on issues such as national interests, national security and sovereignty,” he said at the briefing. “There is talk of large joint construction projects and the modernisation of Belarus’s infrastructure, (and) new credit lines to create modern production.” Xi also said that Belarus could become a key hub for China’s much-vaunted Silk Road vision – a project to bridge Europe and Asia through a series of transportation and energy links. Chinese officials estimated the total value of the Belarus deals at US$15.7 billion. A potash supply memorandum, also signed after the bilateral meetings, agreed shipments of 4 million tonnes over five years and was worth about US$1.3 billion based on current prices, the Belarussian Potash Company said in a statement. “The concrete price level will be the subject of further negotiation,” it said. Cash-strapped Belarus reached an unexpected agreement with China in March over 2015 prices for the crop nutrient potash, undercutting Russian and North American rivals, who were negotiating for higher rates. The former Soviet republic’s economy has been battered by currency volatility in Russia arising from the Ukraine crisis and a plunge in the oil price. The International Monetary Fund forecast the economy to shrink 2 per cent this year. “China has opened up a window of opportunity for Belarus,” said political analyst Jaroslav Romanchuk. “Lukashenko has been given a magic wand. Belarus will be able to capitalise through its status as a transit country and will strive to become hub for the transfer of Chinese goods to Europe.” Xi, the first Chinese leader to visit in 14 years, is expected to stay in Belarus until Tuesday. Reuters, Associated Press Poster Comment: A lot smarter than Obama spending billions bombing Muslims just so Israeli thieves can keep stealing lands from Palestinians and so Democrats and Republicans can keep getting Jew support in Congressional elections. Post Comment Private Reply Ignore Thread
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