Belarus expands list of financial export instruments, types of export risk insurance - EconMin

<p> MINSK, Feb 12 - PrimePress. Belarus has expanded the list of financial export instruments and types of export risk insurance. This is stated in the Ministry of Economy’s commentary to presidential ordinance #39 of February 4, 2021. </p> <p>   </p> <p> In particular, the Development Bank of Belarus was granted the right to carry out interbank export crediting by post-financing letters of credit, as well as the discounting of amounts by letters of credit issued by foreign banks to finance the purchase (payment) of Belarusian goods, works and services. </p> <p>   </p> <p> In 2021-2022, the Development Bank, commercial banks and non-banking financial institutions shall enjoy the right to finance residents (creditors) against the assignment of monetary claims (factoring) for the implementation of export contracts on the terms previously defined by presidential ordinance #534 of 25 August 2006. </p> <p>   </p> <p> Pursuant to ordinance #39, voluntary insurance of the risk of non-return and delayed repayment of credit granted to a resident; voluntary insurance of the risk of non-return and delayed repayment of credit granted by a foreign bank; voluntary insurance of letters of credit (including discounted credit) opened by foreign banks; voluntary insurance of civil liability of a resident under an export contract were added to the list of types of export risk insurance with government support. </p> <p>   </p> <p> “Due to the fact that export risk insurance with government support will be provided by more than one insurer, amendments were made to the regulation on insurance (reinsurance) of export risks. In particular, basic insurance rates for insurance of export risks with state support are set by Beleximgarant or an insurer in coordination with the Ministry of Finance with consideration of the level of political risk of the country. </p> <p>   </p> <p> Ordinance #39 allows the insurer to apply for a budgetary loan for payment of insurance compensation not only under insurance contracts, but also under contracts of reinsurance of export risks with state support. </p> <p>   </p> <p> The budget loan shall be granted for up to three years, and the repayment term shall not be extended. According to the Ministry of Economy, the provision will diversify risks. </p> <p>   </p> <p> As previously reported, Belarusian president Alexander Lukashenko on Feb 4, 2021 signed ordinance #39, which abolishes the minimum amount of export credits of no less than the equivalent of $200 thousand. Presidential ordinance #39 also provides for the possibility of Belarus Development Bank to provide export loans to residents of Belarus for the production of goods, works and services and their subsequent sale to non-residents in 2021-2022, as well as to use such financial instruments as factoring (assignment of monetary claims), post-financing and discounting of letters of credit in 2021-2022. </p> <p>   </p> <p> Also, the decree provides for granting the right to insurance organizations the equity capital of which is not less than Br25 million ($9.71 million at the rate of the National Bank of Belarus) to insure export risks without attracting budget funds for insurance payments. End </p>

2021-02-13

Primepress