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World Bank cites overdue payments, puts loans to Belarus in 'nonperforming' status

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On Monday (17 October), the World Bank announced that all loans made to Belarus by its main lending arm have been placed into "non-performing" status. The World Bank cited overdue payments of $68.43 million.

The bank stated that all IBRD loans to Belarus or guarantees by them were affected. The bank ceased all Belarusian programs on 2 March and has not approved any new lending since May 2020.

According to the IBRD, Belarus' outstanding principal of $967m was 0.42% of all outstanding loans. It stated that being placed in non-performing status causes a charge to income of approximately $12.75m.

Since Western sanctions following Russia's invasion, Minsk's ability of dealing in foreign currencies is limited by Western sanctions, Belarus has made Eurobond payments in Belarusian rubles.

After Russia's invasion in Ukraine on 24 February, and what it called "hostilities towards the Ukrainian people," the multilateral development bank stopped all programs in Russia or Belarus immediately in March.

In mid-2020, the United States placed sanctions on Belarus for a disputed presidential vote. It had already stopped lending to Belarus.

Concerns were raised last week by a flurry in military activity in Belarus that President Alexander Lukasenko might commit his army to support Russia's war effort in Ukraine.

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