OREANDA-NEWS. August 17, 2012. The Government of Belarus has provided security for five loans to the tune of 13.5 million euros provided by OJSC Belgaroprombank to facilitate cardboard and paper production projects at companies controlled by OJSC Svetlogorsk Pulp and Cardboard Mill.

The government’s security covers the repayment of the principal debt.

The one-off payment for government loan guarantees will make up 0.01% of the loan.

The government has instructed the Finance Ministry of Belarus to adjust their budget plans for 2013-2018 to make sure Svetlogorsk Pulp and Cardboard Mill gets reimbursement for loan interest payments: the refund on ruble-denominated loans will be at 50% of the refinancing rate of the National Bank of Belarus; for foreign currency loans half of the interest rate will be refunded by the government.

OJSC Belagroprombank was registered in 1991 and is now the country’s second largest core bank. The state owns a 70% stake in the bank’s charter capital. Belagroprombank accounts for one fourth of Belarusian banks’ resources and over one third of the lending to the real economy.

Moody's Investors Service in July 2011 downgraded Belagroprombank’s GLC long-term deposit rating to B3 from Caa1; long-term foreign currency deposit ratings to B3 from B2; the Outlook is Negative.

Standard & Poor's Ratings Services on April 26, 2012 affirmed the bank’s long- and short-term counterparty credit ratings at 'B-'/ 'C', Outlook changed from Negative to Stable.