MINSK -- Belarus is to hold presentations starting on July 12 for potential buyers of its first-ever Eurobond, RFE/RL's Belarus Service reports.
The Finance Ministry confirmed that Minsk has authorized BNP Paribas, Deutsche Bank, Royal Bank of Scotland, and Russia's Sberbank to organize the so-called road show for an initial $500 million worth of Eurobonds with a maturity of between three and five years.
The ministry said Minsk could eventually borrow as much as $1 billion.
The Belarusian economy, dominated by state-owned heavy industry, has been hit by a recent increase in Russian energy prices.
The International Monetary Fund (IMF) estimates a government "financing gap" of $4 billion for 2010 resulting from the price shock.
The deficit is expected to increase as in the second quarter the Belarusian government largely abandoned budget-tightening measures recommended by the IMF -- a move attributed to the upcoming presidential election expected in fall 2010 or early 2011.
In May 2010, the Standard & Poor's rating agency cited Belarus's high current account deficit -- more than 13 percent of GDP last year -- when it left Belarus's foreign-currency rating unchanged at B+ with a negative outlook.
The economic outlook is expected to improve in 2011, as the government is planning a number of structural reforms and privatizations of state enterprises.
The Russian government has pledged to remove export duties on oil for Belarus after Minsk ratifies agreements on creation of a single economic space with its two customs union partners, Russia and Kazakhstan.
Belarusian government officials have said this could happen as early as this year.
The Finance Ministry confirmed that Minsk has authorized BNP Paribas, Deutsche Bank, Royal Bank of Scotland, and Russia's Sberbank to organize the so-called road show for an initial $500 million worth of Eurobonds with a maturity of between three and five years.
The ministry said Minsk could eventually borrow as much as $1 billion.
The Belarusian economy, dominated by state-owned heavy industry, has been hit by a recent increase in Russian energy prices.
The International Monetary Fund (IMF) estimates a government "financing gap" of $4 billion for 2010 resulting from the price shock.
The deficit is expected to increase as in the second quarter the Belarusian government largely abandoned budget-tightening measures recommended by the IMF -- a move attributed to the upcoming presidential election expected in fall 2010 or early 2011.
In May 2010, the Standard & Poor's rating agency cited Belarus's high current account deficit -- more than 13 percent of GDP last year -- when it left Belarus's foreign-currency rating unchanged at B+ with a negative outlook.
The economic outlook is expected to improve in 2011, as the government is planning a number of structural reforms and privatizations of state enterprises.
The Russian government has pledged to remove export duties on oil for Belarus after Minsk ratifies agreements on creation of a single economic space with its two customs union partners, Russia and Kazakhstan.
Belarusian government officials have said this could happen as early as this year.