Russia will allow Belarus to postpone debt repayments for over a billion dollars by up to 10 years. At the same time, it sets a fixed interest rate. The draft of the relevant law was approved on Tuesday by the State Duma, the lower house of the Russian parliament. Reuters reported about it.

Earlier this year, Belarus asked Moscow to restructure this year’s debt, and the Russian government decided that the obligations of Belarus in the total value of 1.4 billion USD (1.35 billion euros) due from March 2022 to the end of April 2023 will be transferred to the period 2028 to 2033. State Secretary of the Russian Ministry of Finance Timur Maksimov stated this on the floor of the parliament.

In addition, Russia will fix the interest rate at the level of 12% per year, instead of a floating rate tied to the yields of OFZ, that is, Russian government bonds in rubles, Maksimov added. The bill still needs to pass a third reading, the upper house of parliament, and be signed by President Vladimir Putin.

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