Belarusbank and China Development Bank (CDB) have signed a major loan agreement. The signing ceremony was held on June 17, 2016 and was attended by President of CDB Zheng Zhijie and Chairman of the Board of Belarusbank Siarhei Pisaryk.
The document establishes the procedure for financing of the project for construction of Slavkaliy mining and processing complex using Nezhinsky plot of Starobinsky deposit of potassium salts as a source of raw materials (Lyuban district, Minsk region). Enterprise capacity will comprise up to 2 mln tons potassium chloride per annum (also referred to as "potassium salt").
The investment project is aimed at considerably ramping up production, solidifying the position of Belarus as one of the major and leading exporters of potash fertilizers in the world, guaranteeing the return of taxes and inflow of foreign currency to the country's budget as well as creation of new jobs.
Construction of the complex will make it possible to gasify 21 population centers in Lyuban district, a railway station and 37 km of railway will be constructed, Lyuban water intake and sewage dispersal facilities are to be reconstructed.
"The work on the loan agreement for financing the construction of the new complex was quite complicated, but to the satisfaction of all parties concerned today we have reached the final stage. There is still a solid piece of work to be done. I believe that the project will be implemented within the established deadline and will reach the planned indicators" said Siarhei Pisaryk.
Minister of Economy Vladimir Zinovsky, who attended the signing ceremony, underlined that the visit of the President of CDB to sign the loan agreement confirms the deepening of cooperation between Belarusbank and the Chinese financial institution.
Active business relations between Belarusbank and CDB started in 2012 when the bank entered the SCO Interbank Association (Interbank Association of the Shanghai Cooperation Organization).
“The potential of our cooperation can become even more immense. We have every reason to expect that: historically developed contacts, mutual understanding at all levels, mutual interest and economic benefits. The launch of such a large-scale project is yet another evidence of that” mentioned Siarhei Pisaryk.
Background Information
China Development Bank
China Development Bank (CDB) was founded in 1994 as a result of restructuring of state and commercial banks. Its aim is to ensure modernization in the country's social and economic sphere. The bank reports to the supreme executive body of China, the State Council.
CDB has 38 branch offices in China and 2 branch offices abroad – in the Russian Federation and in Egypt.
Organization Structure and Management Bodies of CDB
The supreme management body of CDB is the General Shareholder Meeting which delegates a significant part of its powers to the Board of Directors consisting of 13 members.
CDB has 7,626 employees.
Cooperation with Belarusbank
On 20.06.2011 Belarusbank was authorized to coordinate the procedure of account management relating to provision of grant assistance to the Belarusian Government by the Government of China.
From 2011 to 2015 Belarusbank signed a number of payment agreements with CDB in the context of Technical and Economic Assistance Agreements between the Belarusian Government and the Government of China worth more than RMB 600 mln (over USD 90 mln).
On 28.11.2012 Belarusbank and CDB signed a Framework Agreement (in the form of a cooperation agreement).
On 30.05.2013 the first China-Belarus interbank seminar organized by Belarusbank and CDB was held in Belarusbank. It was devoted to organization of investment projects financing in Belarus with participation of China Development Bank.
On 20.01.2014 Chairman of the Board of Belarusbank S. Pisaryk held a meeting with Vice Chairman and President of CDB Zhen Zhijie/Jeffrey as part of the official visit of the Belarusian Government to PRC.
On 26.09.2014 the Ministry of Finance of the Republic of Belarus and CDB signed a Memorandum of Understanding for setting up a USD 1 bln loan facility to finance Belarusian and Chinese investment projects (USD 300 mln – Belarusbank; USD 700 mln – Development Bank of the Republic of Belarus).
On 10.05.2015 in the course of the visit of the President of PRC Xi Jinping (May 10-12, 2015)
- Master Loan Agreement was signed between Belarusbank and CDB for drawing of a USD 300 mln loan facility;
- Four-Party Memorandum of Understanding was signed between the Ministry of Finance of the Republic of Belarus, CDB, Belarusbank and Slavkaliy for financing of a project of Slavkaliy.