Belarus’ Development Bank to independently set terms for lending to state programs, investment projects – resolution
<p> MINSK, Jul 15 - PrimePress. The Development Bank of the Republic of Belarus JSC will independently set terms for lending to state programs and commercial and non-commercial investment projects (government resolution No.414 of July 10, 2020 posted on the National Legal Internet Portal on July 15). </p> <p> </p> <p> In accordance with the resolution, the Development Bank independently determines the terms and amounts of lending for targeted programs of state financial support; investment projects under state programs; investment (and leasing) projects by decision of the president of Belarus, and commercial and non-commercial investment projects selected by the bank. </p> <p> </p> <p> Development Bank Chairman Andrei Zhishkevich said that previously the bank only could work with projects included in state programs or approved by the president or the government. The Development Bank thus selects projects independently, not entering into competition with commercial financial institutions. </p> <p> </p> <p> According to the resolution, the Development Bank prioritizes financing of non-commercial investment projects solely funded from the national budget by decisions of the president. No business development plans are required. </p> <p> </p> <p> The Development Bank selects commercial investment projects worth at least Br40 million ($16.533 million at the rate of the National Bank of Belarus) with a payback period of at least 7 years. The amount of financing of such projects provided by the bank makes up at least 85% of the amount of investment costs, inclusive of VAT, the loan term being up to 15 years. </p> <p> </p> <p> When financing commercial investment projects worth Br40 million or over, the bank may require an independent examination at the expense of the borrowers. Subject to examination will also be projects that involve setting up and development of industries of the fifth and sixth technological modes regardless of their cost. Also, the bank may request an examination (comprehensive or in specified segments) for complex technological projects. </p> <p> </p> <p> The resolution approves the procedure for placing idle funds of the Development Bank into deposits in Belarusian rubles or foreign exchange in Belarusian banks, including the National Bank. The Development Bank may use idle funds for lending to other banks, acquisition of government securities, securities of the National Bank and commercial banks, local authorities, and for foreign exchange transactions. </p> <p> </p> <p> The Development Bank of the Republic of Belarus was established in 2011 by presidential ordinance No.261 of June 21, 2011 to increase the efficiency of projects included in government programs, reduce the time of their implementation and cost recovery. It finances government programs on its own behalf and at its own expense on terms of urgency, payment and repayment. The state holds 96.224% in the bank’s statutory capital. End </p>
2020-07-16
Primepress
MINSK, Jul 15 - PrimePress. The Development Bank of the Republic of Belarus JSC will independently set terms for lending to state programs and commercial and non-commercial investment projects (government resolution No.414 of July 10, 2020 posted on the National Legal Internet Portal on July 15).
In accordance with the resolution, the Development Bank independently determines the terms and amounts of lending for targeted programs of state financial support; investment projects under state programs; investment (and leasing) projects by decision of the president of Belarus, and commercial and non-commercial investment projects selected by the bank.
Development Bank Chairman Andrei Zhishkevich said that previously the bank only could work with projects included in state programs or approved by the president or the government. The Development Bank thus selects projects independently, not entering into competition with commercial financial institutions.
According to the resolution, the Development Bank prioritizes financing of non-commercial investment projects solely funded from the national budget by decisions of the president. No business development plans are required.
The Development Bank selects commercial investment projects worth at least Br40 million ($16.533 million at the rate of the National Bank of Belarus) with a payback period of at least 7 years. The amount of financing of such projects provided by the bank makes up at least 85% of the amount of investment costs, inclusive of VAT, the loan term being up to 15 years.
When financing commercial investment projects worth Br40 million or over, the bank may require an independent examination at the expense of the borrowers. Subject to examination will also be projects that involve setting up and development of industries of the fifth and sixth technological modes regardless of their cost. Also, the bank may request an examination (comprehensive or in specified segments) for complex technological projects.
The resolution approves the procedure for placing idle funds of the Development Bank into deposits in Belarusian rubles or foreign exchange in Belarusian banks, including the National Bank. The Development Bank may use idle funds for lending to other banks, acquisition of government securities, securities of the National Bank and commercial banks, local authorities, and for foreign exchange transactions.
The Development Bank of the Republic of Belarus was established in 2011 by presidential ordinance No.261 of June 21, 2011 to increase the efficiency of projects included in government programs, reduce the time of their implementation and cost recovery. It finances government programs on its own behalf and at its own expense on terms of urgency, payment and repayment. The state holds 96.224% in the bank’s statutory capital. End