China gives Belarus $1 bln loan

China has allocated $1 billion in loan on favorable terms to Belarus, which is in the midst of a financial crisis, China's top legislator Wu Bangguo said on Saturday. Wu, chairman of the Standing Committee of China's National People's Congress (NPC), arrived in Minsk on Saturday on an official goodwill visit. He is expected to meet with Belarusian President Alexander Lukashenko. China appreciates Belarus' support for it on issues concerning Taiwan, Tibet, Xinjiang and human rights, Wu said, adding that China will, as always, support Belarus to continue on its self-chosen development path and pursue domestic and foreign policy in conformity with its domestic conditions. The Belarusian ruble has come under severe pressure in the first five months of the year from a large trade deficit, generous wage increases and loans granted by the government ahead of the December 2010 presidential elections, which spurred strong demand for foreign currency. In spring, the country's authorities devaluated the national currency by 36 percent, froze prices on some staple foods and introduced fuel rationing to keep the lid on the deepening crisis. The Belarusian government has applied for loans from Russia and EurAsEC, a post-Soviet economic bloc. Russia said it would support loan disbursement to Belarus via EurAsEC, which approved a $3 billion bailout. The Belarusian authorities also said the country intended to raise up to $8 billion from the International Monetary Fund to stabilize its finances.