Trends in Belarus banking sector: settlements in national currencies, SWAP agreement with China, blockchain

<p> MINSK, Sep 14 - PrimePress. The following trends are relevant for Belarus’ banking sector: settlements in national currencies, resumption of the SWAP Agreement between the central banks of Belarus and China for short-term trade financing, the use of blockchain, financial crypto-platforms. </p> <p>   </p> <p> Project Manager at Bank BelVEB’s Ecosystem Development Department, former Ambassador of Belarus to China Kirill Rudy made a statement to this effect during the presentation “Cooperation with Belarusian banks under sectoral sanctions” organized by the National Bank of Belarus and Bank BelVEB, BelVEB’s press-service informed. </p> <p>   </p> <p> He reminded that both Belarus and China have faced sanctions more than once. According to him, the partners need to learn to work with them and cooperate further. In this case, he believes, the main condition for success is openness. </p> <p>   </p> <p> “In order to work under sanctions, it is important to constantly maintain relations. We are talking about sending friendly information letters, engaging embassies, regulators for clarifications, holding regular (monthly) online meetings between the compliance services of banks with the participation of key clients, case-by-case work,” Rudy explained. </p> <p>   </p> <p> In particular, Bank BelVEB has opened a China Desk in the Great Stone Industrial Park for this very purpose. </p> <p>   </p> <p> The expert urged not to dramatize the situation around the sanctions. </p> <p>   </p> <p> “There are trends in economic growth, inflation, foreign exchange reserves, the exchange rate, the development of banks. Macroeconomic and financial stability is ensured in the country,” said Rudy. </p> <p>   </p> <p> During the presentation First Deputy Chairman of the Board of Bank BelVEB Taras Nadolny said that Bank BelVEB is ready to share the experience of working in the conditions of sectoral sanctions. </p> <p>   </p> <p> “Due to the changing situation, lack of information and uncertainty, our customers and partners, and not only our customers and partners, have a natural apprehension, and sometimes a desire to reduce or even stop cooperation. In our opinion, there is no need to do this. We need to look for new opportunities to work in these conditions,” said Nadolny. </p> <p>   </p> <p> Bank BelVEB specialists have presented a case study of their 8 years’ experience working under sectoral sanctions and shared their actual experience in interbank cooperation with the People’s Republic of China. For instance, they presented the specifics and advantages of working with the bank in the area of trade finance and settlement business, including in the Chinese direction. They accentuated the point that the sectoral sanctions against Bank BelVEB imposed only restrictions on the provision of long-term financing by US individuals and legal entities in relation to debt obligations with a maturity of more than 14 days. Also, this restriction applies to the issuance of shares and bonds (and any other form of capital expansion), all other transactions are allowed. </p> <p>   </p> <p> “We have learned one golden rule fr om the experience gained during our work in the sanctions regime: Chinese banks are always more loyal wh ere not only a Belarusian company and a Belarusian bank, as the provider of its interests, but also a Chinese company is interested in the implementation of a foreign trade contract. In the current challenging environment, it is joint action in one direction that is the cornerstone of success,” said Alexander Kashlach, Director of the Corporate Business Development Department at Bank BelVEB. </p> <p>   </p> <p> Bank BelVEB was registered by the National Bank of Belarus on December 12, 1991. Russia’s Vnesheconombank holds a 97.52% stake in Bank BelVEB; Minsk City Territorial State Property Fund – 2.29%. BelVEB belongs to the Tier 1 Group of banks. End </p>

2021-09-15

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