Belarus’ govt, NBB establish procedure for financial backing of Development Bank – resolution
<p> MINSK, Jul 15 - PrimePress. The government and the National Bank of Belarus determined a procedure for funding the Development Bank of the Republic of Belarus JSC to ensure its functioning in conditions of financial instability. The procedure was approved by joint resolution No.415/14 of the Council of Ministers and the National Bank of Belarus (NBB) issued on July 10, 2020 and posted on the National Legal Internet Portal on July 15, 2020. </p> <p> </p> <p> The Development Bank may apply for financial support to the Ministry of Finance if it is unable to raise funds on the domestic financial market by available means. </p> <p> </p> <p> The Finance Ministry may provide the requested funds through the placement of fixed-term irrevocable deposits with the bank; acquisition (redemption) of government securities (including securities of the National Bank of Belarus) that are in the Development Bank’s portfolio; acquisition of Development Bank bonds; repo transactions; SWAP transactions. </p> <p> </p> <p> Deposits can be made in Belarusian rubles for up to 30 days at the interest rate equal to the rate on an overnight loan (8.75% per annum since July 1). The Finance Ministry may place several deposits in the Development Bank for different or equal periods of time. </p> <p> </p> <p> If the Development Bank has obligations to the Finance Ministry on the funds provided continuously for 90 days, the Development Bank is to request an increase in its authorized fund tin by the shareholders. </p> <p> </p> <p> The resolution comes into force on the date of its official publication. </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 government and the National Bank of Belarus determined a procedure for funding the Development Bank of the Republic of Belarus JSC to ensure its functioning in conditions of financial instability. The procedure was approved by joint resolution No.415/14 of the Council of Ministers and the National Bank of Belarus (NBB) issued on July 10, 2020 and posted on the National Legal Internet Portal on July 15, 2020.
The Development Bank may apply for financial support to the Ministry of Finance if it is unable to raise funds on the domestic financial market by available means.
The Finance Ministry may provide the requested funds through the placement of fixed-term irrevocable deposits with the bank; acquisition (redemption) of government securities (including securities of the National Bank of Belarus) that are in the Development Bank’s portfolio; acquisition of Development Bank bonds; repo transactions; SWAP transactions.
Deposits can be made in Belarusian rubles for up to 30 days at the interest rate equal to the rate on an overnight loan (8.75% per annum since July 1). The Finance Ministry may place several deposits in the Development Bank for different or equal periods of time.
If the Development Bank has obligations to the Finance Ministry on the funds provided continuously for 90 days, the Development Bank is to request an increase in its authorized fund tin by the shareholders.
The resolution comes into force on the date of its official publication.
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