Tatyana Valeryevna, for solution of which tasks has the Development Bank been established in our country? Given that, there have been no financial institutions of such kind in the country previously.
The Development Bank has been established for increase in reliability of financial and credit system of the country and economic development of the state.
The top-priority issue needed to be resolved was acquisition of assets of state banks related to financing of projects by them under the government programs. That will mainly promote to improvement of the financial condition of the banks, which are involved in crediting of governmental programs, positively affect stability of their functioning, lead to decrease in accepted risks, improvement of quality of the credit portfolio, increase in investors' confidence.
Besides, in order to accomplish the purpose in view, the Development Bank had to start financing of new projects included into the governmental programs. It will allow creating conditions for transparency and efficiency of decisions taken, improving finance facility upon concurrent decrease in credit risks and liquidity risks of the banking sector.
On a priority basis, the Development Bank will finance high technology, innovative, export-oriented projects, which are strategically crucial for the country and not always may be characterized by rapid time to value and high efficiency.
Term of financing of investment projects by us may make up to 15 years. In the long view, we consider it reasonable to increase it.
Actually, the Development Bank has commenced its activity since September of the last year. At that time, the staff consisted of three employees. Nevertheless, since September until December we have made all necessary organizational and technical arrangements, have done considerable work on development of local regulatory legal acts. In this case, the primary emphasis has been placed upon working out of the optimum mechanism of interaction between the Development Bank and banks-agents (Belagroprombank and Belarusbank). It has allowed acquiring assets of banks within strictly regulated terms. As early as in December, the Development Bank has assumed debts of 166 enterprises of the agricultural sector under 254 credit agreements for 2.1 trillion Belarussian roubles At the end of this year, we plan to get the second tranche of assets from state banks.
Upon that, borrowers — agricultural organizations and enterprises of the agricultural sector, the debts whereof have been transferred to the balance of our bank, have not experienced any changes.
All original terms and conditions stipulated in credit agreements, concluded with Belagroprombank JSC or ASB Belarusbank JSC, remain in force. The only thing is that at the present moment, enterprises will allocate cash assets for repayment of credit facilities and interests to the Development Bank.
In this respect, is should be mentioned that the new financial institution possesses more manifold possibilities for restructuring of debts of enterprises-debtors, which have found themselves in a tight situation, compared to commercial banks. A set of measures directed at decrease in loan debt burden will assist the enterprise in recovering of financial solvency, getting away of the critical financial position. This particularly includes: provision of a delay (payment by installments) in repayment of the principal debt up to 5 years; decrease in interest rate for credit use up to the medium level under the borrowings; a delay in repayment of the overdue interests for credit use and other means provided by the legislation.
However, I would like to pay special attention to the fact that the Development Bank has been established not for writing off debts and, until meeting the needs of the debtor, we will require the corresponding package of documents, including an application from state regulatory agencies. Actual business plan of the enterprise development for a term of up to 6 years is obligatory. We should see how it is going to come out of the crisis, which economic benefit the arrangements mentioned in the business plan will provide and estimate, whether the borrower is able to repay the debts to the bank in the future or not.
Which projects did the Development Bank start to finance in 2012 on a priority basis?
List of governmental programs and volumes of financing through the Development Bank are annually defined by the Government of the country. In such a way, during the current year, it is scheduled to finance arrangements of governmental programs for 5.5 trillion roubles.
One of priority directions of allocation of resources is financing of a government program of dairy branch development, in particular, construction of milk product farms and equipping them with cooling and milking equipment. This is a promising direction. Even today, the country is playing a leading role in the world in terms of milk production per capita. Development of production capacities of new milk product farms will allow further increasing volumes of milk production, and turnover thereof by agricultural organizations for processing accordingly.
About 55% of milk passed for processing in the form of dairy products is delivered for export that guarantees inflow of more than 2 billion US dollars of currency earnings to the country per year.
Besides, credit resources will be directed at implementation of investment projects in such branches, as poultry farming, livestock farming, commercial fishing activity, potato farming and vegetable farming, technical re-equipping of the compound feed industry.
2012 is a transition period for the system of governmental programs financing. Credit facilities will be granted by both the Development Bank, and state banks customary for enterprises of the agricultural sector, at the expense of resources provided by the Development Bank.
In March, the Development Bank opened first own credit lines under governmental programs for enterprises of the agricultural sector.
Resolution has been adopted in terms of rendering of credit assistance under more than 35 projects.
We are very careful and scrupulous when approaching business plans of investment projects. They should be objectively accomplishable and economically effective. If the Development Bank fails to find sources of financing of all expenses for project implementation, such projects will not be credited. Human resources of the Development Bank allows managing the projects under consideration with success: make decisions taking into account the existing risks, express proposals under the marketing policy, make consultations concerning issues of implementability and reality of projects.
Whether the scheme of interaction of all members of the process for governmental programs crediting has been changed?
Obtaining new credit facilities in the Development Bank by agricultural organizations has little differences with the customary procedure of obtaining credit facilities in Belagroprombank and Belarusbank. In most cases, work is carried out through these banks-agents, with which we have entered into agreements. Having the developed branch network, they will carry out on-site work with applicants regarding collection of a package of documents, preparation of required information for taking a decision by Development Bank on the possibility for granting of a credit, and thereafter will make payments for credit transfer according to the designated purpose. In this respect, decisions on granting of credit facilities are taken by the Development Bank, enterprises also conclude credit agreements with us, and finally, credit facilities will start being granted on account of resources of the Development Bank. Therefore, we bear all risks under newly granted credit facilities independently.
Which objectives does the Development Bank set in the medium and long-term perspective?
The main objective: transformation into an up-to-date and independent national financial development institution, which plays an important role in increase of efficiency of investment in priority branches of economy. Accomplishment of the set objective is closely connected with resolution of different issues. It includes improvement of financing mechanisms, particularly by means of allocation of resources among commercial banks on a competitive basis, and formation of long-term resource base for satisfaction of economy needs in credit resources, using various borrowing instruments at capital markets. Recognition of the Development Bank as a reliable financial institution will guarantee successful resolution of this issue. Wherefore work is being carried out on preparation for entry of international financial borrowings to the market in 2013.
Besides, we will have to create conditions for qualitative and operative client servicing, organize an effective mechanism of interaction between the Development Bank, banks-agents and clients. Thereafter, following the development of an optimum scheme of interaction on granting and support of new credit facilities, introduction of mechanism for attraction of banks-agents on a competitive basis is possible.
The interview was held by Olga Parfyanovich