The Libyan Arabian Foreign Bank intends to allot Belarus a credit of USD 130.8 million, said Belarussian television station ONT on August 9. According to the ONT report payment of the credit will be guaranteed by the Belarussian government and the agreement is ready to be signed. The credit will be allotted for a period of 5 years at an interest rate of 3.5% annually. According to the terms of the preliminary agreement, the Libyan Bank will 'transfer immediately the entire sum, which will be applied for financing the government expenses of the borrower.' Libya will defer the payment of the primary debt for 1 year.
'The credit will go towards paying the country's debt to Gazprom for the earlier delivery of natural gas on January 1, 2003,' said ONT. Belarussian President Alexander Lukashenko said at a press conference for Russian regional media on August 1 that the Belarussian debt to Gazprom amounts to USD 123 million and 'we will pay it.'