According to Presidential decree of the Republic of Belarus “On some measures to promote goods made in the Republic of Belarus” No.466 dd 24.09.2009, the Government of the Republic of Belarus performs subsidizing of interest rates on loans/leasing agreements provided by foreign banks (concluded by leasing companies) for purchase of goods produced in Belarus, and compensations for post financing of letters of credit provided by foreign banks.
Resolution of the Council of Ministers of the Republic of Belarus No.72 dd 04.02.2015 “On measures to promote goods made in the Republic of Belarus” established a procedure for cooperation in case part of interest on the loans, compensations for post financing of letters of credit are repaid to foreign banks and part of lease payments are repaid to leasing companies – non-residents of the Republic of Belarus.
Advantages of lending under the program for purchasing technical devices produced in Belarus:
- payment of a part of interest on the loan by the Government of the Republic of Belarus in an amount up to 2/3 of the refinancing rate as of the loan agreement date;
- financing with different types of security, including against security of acquired technical devices;
- reliable suppliers of technical devices and equipment.
Belarusbank is an authorized agent bank for working with foreign banks and non-resident leasing companies.
Foreign banks, foreign leasing companies entitled for a compensation, and Belarusian manufacturers that produce technical devices falling within the scope of the subsidy program are listed in Resolution No.72.
Compensation amount
within the Financing Program
according to Presidential Decree of the Republic of Belarus No.466
in case of compensation of interest (with the exception of interest on loans utilized by borrowers and banks from third countries)
2/3 of the refinancing rate in force in the state were goods produced in the Republic of Belarus are acquired as of the date specified in concluded agreements
in case of compensation of interest on loans utilized by borrowers and banks from third countries, compensations for post financing of letters of credit:
in US dollars – LIBOR for 12-month interbank deposits in US dollars as of the date specified in concluded agreements increased by 3 percentage points (if LIBOR is negative, it is taken as zero), but no more than 4 per cent per annum;
in euro – EURIBOR for 12-month interbank deposits in euro as of the date specified in concluded agreements increased by 3 percentage points (if EURIBOR is negative, it is taken as zero), but no more than 3 per cent per annum;
in case of compensation of lease payments (except for lease payments under finance lease (leasing) agreements made with leaseholders from third countries)
part of the investment of the leasing company – non-resident of the Republic of Belarus calculated based on 2/3 of the refinancing rate in force in the state were goods produced in the Republic of Belarus are submitted to the leaseholder as of the date specified in concluded agreements;
in case of compensation of lease payments under finance lease (leasing) agreements made with leaseholders from third countries:
in US dollars – part of the investment of the leasing company – non-resident of the Republic of Belarus calculated based on LIBOR for 12-month interbank deposits in US dollars as of the date specified in concluded agreements increased by 3 percentage points (if LIBOR is negative, it is taken as zero), but no more than 4 per cent per annum;
in euro – part of the investment of the leasing company – non-resident of the Republic of Belarus calculated based on EURIBOR for 12-month interbank deposits in euro as of the date specified in concluded agreements increased by 3 percentage points (if EURIBOR is negative, it is taken as zero), but no more than 3 per cent per annum;
The financing model and payment mechanism are illustrated below:
CONTACTS
Regarding the implementation of Decree №466:
Ministry of Industry Republic of Belarus
Tel.: +375 (17) 330 05 94, 223 72 27
International Business Department
Tel.: +375 (17) 309 00 89, 309 07 12
Fax: +375 (17) 200 88 50, 200 37 82