The World Bank announced on Monday that it has immediately put all loans given to Belarus by its primary lending arm into the “nonperforming” category owing to $68.43 million in past-due payments, Reuters reported.
According to the International Bank for Reconstruction and Development (IBRD), all loans made to or guarantees provided by Belarus were impacted. On March 2, the bank halted all programs in Belarus, and since May 2020, it hasn’t authorized any new loans for the nation.
The bank stated that Belarus’ $967 million in unpaid principal represented 0.42% of all outstanding loans from the IBRD. A charge to income of around $12.75 million resulted from being put in nonperforming status, it added.
Since Minsk’s capacity to transact in foreign currencies is restricted by Western sanctions following Russia’s invasion of Ukraine, Belarus has paid certain Eurobond payments in Belarusian rubles.
Following Russia’s attack on Ukraine on February 24 and what it referred to as “hostilities against the people of Ukraine,” the World Bank discontinued all activities in Russia and Belarus with immediate effect.
Halfway through 2020, when Washington placed sanctions on Belarus due to a contentious presidential election, it had already ceased authorizing any new credit to Belarus.
There have been worries that President Alexander Lukashenko may send his troops to back Russia’s sputtering war campaign in Ukraine after a flurry of military activities last week.
