Belarus will fulfill debt obligations on Eurobonds in Belarusian rubles because of the impossibility to make payments in foreign currency due to Western sanctions, reported the government of the republic.

“Belarus will fulfill debt obligations on Eurobonds in Belarusian rubles. The government together with the National Bank has adopted a relevant resolution. (…) This measure is forced and is due to the impossibility of the payment agent and other participants of the international settlement and clearing system to guarantee the completeness and timeliness of funds transfer to all holders of Eurobonds,” reads the press service of the Council of Ministers.

In accordance with the decision of the authorities, the fulfillment of debt obligations on government securities, placed in foreign financial markets, will be carried out in Belarusian rubles at the rate of the National Bank on the date of payment.

The message explains that when paying the next coupon yield on Eurobonds in February, some owners of Eurobonds could not receive the funds due to them due to problems with settlements.

In April, Belarusian Finance Minister Yuri Seliverstov said that the republic did not consider it a problem that Western creditors might declare a technical default due to the sanctions imposed on Minsk and was ready to pay foreign debt in Belarusian, Russian rubles or Chinese yuan.

Earlier, the Belarusian government decided that it would pay its obligations to the World Bank (WB), the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB) in Belarusian rubles.

In addition, Belarusian enterprises and banks are allowed to fulfill their foreign debt obligations to the countries that imposed sanctions on Belarus in the national currency.

Currently, there are 5 issues of Belarusian Eurobonds totaling $3.25 billion in circulation. The last time Belarus entered the Eurobond market in June 2020, when it placed 5-year Eurobonds for $500 million at 6.125% and 10-year Eurobonds for $750 million at 6.375%. The placement was organized by Citi, Societe Generale (EPA:SOGN), Raiffeisen Bank and Renaissance Capital. More than 50% of the investor base was US residents.