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:
- compensation by the Government of the Republic of Belarus for part of the amount of interest for using the loan in the amount of no more than 2/3 of the refinancing rate established in the state in whose territory goods produced in the Republic of Belarus are purchased;
- the possibility of transferring compensation for part of the amount of interest for using a loan in a currency other than the national one;
- post-financing under letters of credit provided by a non-resident bank of the Republic of Belarus;
- leasing of goods produced in the Republic of Belarus by a non-resident of the Republic of Belarus;
- reliable suppliers of machinery 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 Russian rubles - 2/3 of the key rate of the Central Bank of the Russian Federation in force on the date specified in the concluded agreements;
in euros - the EURIBOR rate on 12-month interbank deposits in euros, valid on the date specified in the concluded agreements, increased by 3 percentage points (if a negative value, EURIBOR is taken as zero), but not more than 3 percent per annum;
also in other currencies in agreement with the Ministry of Industry of the Republic of Belarus.
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 Russian rubles - part of the investment of a leasing company - a non-resident of the Republic of Belarus, calculated on the basis of 2/3 of the key rate of the Central Bank of the Russian Federation in effect on the date specified in the concluded agreements;
in euros - part of the investment of a leasing company - a non-resident of the Republic of Belarus, calculated based on the EURIBOR rate for 12-month interbank deposits in euros, valid on the date specified in the concluded agreements, increased by 3 percentage points (if a negative value, EURIBOR is taken as zero), but not more than 3 percent per annum;
also in other currencies in agreement with the Ministry of Industry of the Republic of Belarus.
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 07 12, 309 00 89
Fax: +375 (17) 358 37 82, 395 37 56