S&P affirms credit ratings of Belarusbank, BelVEB, Belagroprombank at ‘B’, Outlook negative, amid EU sanctions
MINSK, Jul 8 - PrimePress. S&P Global Ratings has affirmed the long-term and short-term credit ratings of Belarusbank, BelVEB Bank and Belagroprombank at ‘B’, outlook negative, the agency says in a report. <br> <br> According to S&P, the impacts of the new sanctions imposed by the European Union (EU) on Belarusbank and Belagroprombank will be manageable, while BelVEB is not subject to EU sanctions, and its exposure to Belarusian corporate borrowers is very moderate. <br> <br> “We affirmed the ratings because we believe that Belarusbank, Belagroprombank and BelVEB can cope with potential pressure on funding and liquidity due to the new EU sanctions against the financial sector,” reads the report.<br> <br> S&P believes that political instability and economic uncertainty will continue to put pressure on depositor confidence and financial stability of the Belarusian banking sector, while liquidity will remain under pressure throughout 2021. The negative outlooks on the three banks reflect the pressure on their asset quality and liquidity. <br> <br> As previously reported, S&P affirmed on June 30 the long-term and short-term sovereign credit ratings of Belarus in foreign and local currencies at ‘B’, outlook negative. <br> <br> On June 25, 2021, the EU imposed sanctions on the major sectors of the Belarusian economy, including the termination of cooperation between the European Investment Bank and the public sector of Belarus, limitations on the participation of the EU countries in the Belarusian banking sector and access to the EU capital market and insurance services. Also, the EU prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. Securities of large credit institutions or other institutions with more than 50% state ownership or control as of 29 June 2021 are also prohibited. The ban also affects bonds issued by major credit or other institutions established in Belarus with over 50% public ownership or control as of 29 June 2021.<br> <br> Belarusbank, Belarus’ largest bank, was founded in July 1991 and transformed in October 1995 through merger with Sberbank of Belarus. The government stake in the bank's authorized capital is 99.95%. <br> <br> BelVEB Bank OJSC was registered by the National Bank of the Republic of Belarus on December 12, 1991. The share of the Russian state corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) in the authorized capital of BelVEB Bank OJSC makes up 97.52%; Minsk City Territorial State Property Fund – 2.29%. BelVEB was assigned to the systemic significance Group I. <br> <br> Registered in 1991, Belagroprombank OJSC is the second largest backbone bank of Belarus. The main share (91.34%) in its authorized capital is held by the Republic of Belarus represented by the State Property Committee. End<br> <br>
2021-07-08
Primepress
S&P affirms credit ratings of Belarusbank, BelVEB, Belagroprombank at ‘B’, Outlook negative, amid EU sanctions
According to S&P, the impacts of the new sanctions imposed by the European Union (EU) on Belarusbank and Belagroprombank will be manageable, while BelVEB is not subject to EU sanctions, and its exposure to Belarusian corporate borrowers is very moderate.
“We affirmed the ratings because we believe that Belarusbank, Belagroprombank and BelVEB can cope with potential pressure on funding and liquidity due to the new EU sanctions against the financial sector,” reads the report.
S&P believes that political instability and economic uncertainty will continue to put pressure on depositor confidence and financial stability of the Belarusian banking sector, while liquidity will remain under pressure throughout 2021. The negative outlooks on the three banks reflect the pressure on their asset quality and liquidity.
As previously reported, S&P affirmed on June 30 the long-term and short-term sovereign credit ratings of Belarus in foreign and local currencies at ‘B’, outlook negative.
On June 25, 2021, the EU imposed sanctions on the major sectors of the Belarusian economy, including the termination of cooperation between the European Investment Bank and the public sector of Belarus, limitations on the participation of the EU countries in the Belarusian banking sector and access to the EU capital market and insurance services. Also, the EU prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. Securities of large credit institutions or other institutions with more than 50% state ownership or control as of 29 June 2021 are also prohibited. The ban also affects bonds issued by major credit or other institutions established in Belarus with over 50% public ownership or control as of 29 June 2021.
Belarusbank, Belarus’ largest bank, was founded in July 1991 and transformed in October 1995 through merger with Sberbank of Belarus. The government stake in the bank's authorized capital is 99.95%.
BelVEB Bank OJSC was registered by the National Bank of the Republic of Belarus on December 12, 1991. The share of the Russian state corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) in the authorized capital of BelVEB Bank OJSC makes up 97.52%; Minsk City Territorial State Property Fund – 2.29%. BelVEB was assigned to the systemic significance Group I.
Registered in 1991, Belagroprombank OJSC is the second largest backbone bank of Belarus. The main share (91.34%) in its authorized capital is held by the Republic of Belarus represented by the State Property Committee. End