Belarus has "understanding" with Russia on 2019 loan: PM

Russian President Vladimir Putin (2nd, R), Belarussian President Alexander Lukashenko (2nd L), Russian Prime Minister Dmitry Medvedev (R) and Belarussian Prime Minister Sergei Rumas attend a meeting in Sochi, Russia September 21, 2018. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

MINSK (Reuters) - Belarus and Russia have reached an understanding about a Russian loan to Belarus in 2019, and Russia has also offered to transfer money to Belarus to compensate for changes in Russian tax policy, Belarus Prime Minister Sergei Rumas said on Friday.

Russia understands its tax changes will have a negative impact on Belarus, Rumas said in parliament. Belarus expects to agree on two tranches of a Eurasian fund loan for $400 million (307 million pounds) and a Russian government loan for $1 billion to refinance payments on foreign currency. The money would help Belarus cope with debt payments falling next year which total $3.7 billion.

Reporting by Andrei Makhovsky; writing by Matthias Williams