OREANDA-NEWS. August 26, 2009. The Belarusian government will provide guarantees to pay out a JPY3 billion loan (around Br89.9 billion according to the effective exchange rate) to Japan Bank for International Cooperation. The loan is issued to the Svetlogorsk-based company Khimvolokno for an investment project meant to increase the company’s output. The decision is laid down by the Council of Ministers’ resolution No. 1084, reported the Official website government.by.

In line with the Resolution the Government undertakes to guarantee the repayment of the loan, which is issued to finance an investment project for increasing the output of Khimvolokno’s polyether filament plant, interest payments, and other payments. Belvnesheconombank has been chosen to be the agent bank to service the Japanese loan. The Belarusian petrochemical concern Belneftekhim has been instructed to be the underwriter of the loan.

In line with the Government resolution new technological equipment required for implementing the investment project (extrusion and texturing machines, a remoulding line for manufacturing POV filaments) are exempt from customs duties and VAT during the import process.

The investment project is one of the largest ones listed by Khimvolokno’s prospective development programme. In 2011 the reconstruction is supposed to increase the production of polyether filaments by 60% in comparison with 2006 (from 23,400 tonnes to 38,500 tonnes per annum). In 2008 the polyether filaments output reached 28,700 tonnes. In 2009 the figure is supposed to exceed 30,000 tonnes.

Founded in 1964, Svetlogorsk Khimvolokno is a major Belarusian petrochemical company. It comprises enterprises for manufacturing polyether filaments and man-made fibres. The company employs over 6,000 people.