OREANDA-NEWS. September 17, 2010. Belarus plans to borrow USD 2.2 billion on foreign markets in 2011, Finance Minister Andrei Kharkovets said when presenting the budget bill for 2011 in the lower chamber of parliament, the House of Representatives.

“New loans are projected at USD 2.2 billion. The main objective of the loans is to upgrade the economy and ensure the economic security of the state in terms of gold and foreign exchange reserves,” Kharkovets said.

Belarus expects tied loans from China totaling USD 1 billion and from the World Bank amounting to USD 119 million in 2011.

The loans will be used to start large-scale projects to modernize the energy system, which require USD 913 million. Furthermore, new productions will be created in Belarus, including a sulfate bleached pulp plant at Svetlogorsk CCP and a sodium carbonate-making plant in the Mozyr District. Also, the loans will be spent on infrastructure projects.

Also in 2011, Belarus plans to sell another USD 1 billion worth of Eurobond “to increase gold and foreign exchange reserves and address the external imbalance.”