Belarus government raises limit on placement of insurance companies’ reserves in securities of National Bank, local authorities
<p> MINSK, Jun 25 - PrimePress. The government of Belarus has raised the limits on assets that can be invested by insurance companies in securities of the National Bank of Belarus and local authorities. </p> <p> </p> <p> The new limits are specified in in government resolution #359 of Jun 23, 2020. </p> <p> </p> <p> The document says the limit of investment in securities of the National Bank has been raised to 15% fr om 10% of the reserves of insurance companies, in securities of the local authorities - to 15% fr om 10%. </p> <p> </p> <p> Also, the limit on investment of insurance companies’ funds in securities of Belarusian banks, except for shares - up to 30% from 20%, as well as in the securities of legal entities of Belarus, which are not banks (except for the Development Bank), except for shares and promissory notes - up to 25% from 20%. The lim it on investment in real estate, except for residential premises - it is not more than 10%, and the lim it on investment in precious metals - up to 5% from 10%. </p> <p> </p> <p> It is mentioned in the document that insurance companies are still required to have at least 10% of insurance reserves in their accounts with banks of the Republic of Belarus, including deposits. At the same time, they are required to invest in government securities and/or securities of Belarus Development Bank and/or place at least 35% of insurance reserves on deposits with state banks. The previous norm regulated such investments by insurance types: at least 40% of life insurance reserves and at least 35% of other insurance types. </p> <p> </p> <p> The maximum aggregate value of securities of one bank of the Republic of Belarus, one local executive and administrative body, and one legal entity (except the Development Bank) should not exceed 10% of the amount of insurance reserves of an insurance institution. </p> <p> </p> <p> In addition, insurance companies are allowed to transfer funds of insurance reserves into trust management to specialized Belarusian companies (including banks) which have been in trust management for at least three years. Such investments may not exceed 30% of the amount of insurance reserves. The resolution comes into force three months after its official publication. End </p>
2020-06-26
Primepress
MINSK, Jun 25 - PrimePress. The government of Belarus has raised the limits on assets that can be invested by insurance companies in securities of the National Bank of Belarus and local authorities.
The new limits are specified in in government resolution #359 of Jun 23, 2020.
The document says the limit of investment in securities of the National Bank has been raised to 15% fr om 10% of the reserves of insurance companies, in securities of the local authorities - to 15% fr om 10%.
Also, the limit on investment of insurance companies’ funds in securities of Belarusian banks, except for shares - up to 30% from 20%, as well as in the securities of legal entities of Belarus, which are not banks (except for the Development Bank), except for shares and promissory notes - up to 25% from 20%. The lim it on investment in real estate, except for residential premises - it is not more than 10%, and the lim it on investment in precious metals - up to 5% from 10%.
It is mentioned in the document that insurance companies are still required to have at least 10% of insurance reserves in their accounts with banks of the Republic of Belarus, including deposits. At the same time, they are required to invest in government securities and/or securities of Belarus Development Bank and/or place at least 35% of insurance reserves on deposits with state banks. The previous norm regulated such investments by insurance types: at least 40% of life insurance reserves and at least 35% of other insurance types.
The maximum aggregate value of securities of one bank of the Republic of Belarus, one local executive and administrative body, and one legal entity (except the Development Bank) should not exceed 10% of the amount of insurance reserves of an insurance institution.
In addition, insurance companies are allowed to transfer funds of insurance reserves into trust management to specialized Belarusian companies (including banks) which have been in trust management for at least three years. Such investments may not exceed 30% of the amount of insurance reserves. The resolution comes into force three months after its official publication. End