Export Support

In accordance with the Decree of the President of the Republic of Belarus of 21.06.2011 № 261 “On establishment of joint stock company “Development Bank of the Republic of Belarus” one of the primary objectives of the Development Bank is promotion of export through its financial support.

The Development Bank provides financial support to export within the framework of the Decree of the President of the Republic of Belarus of 25.08.2006 № 534 “On the promotion of exports of goods (works, services)” (hereinafter referred to as Decree № 534) by means of:

  • financing leasing companies-residents of the Republic of Belarus for purchasing  goods produced by the residents of the Republic of Belarus included into the list approved by the Council of Ministers of the Republic of Belarus (hereinafter – goods included into the list) for further  leasing out or selling to non-resident  entities,  except foreign banks;
  • financing non-resident companies except foreign banks for payment for goods from the list or works, services realized by residents or for  preliminary payment for goods from the list, or works, services produced and (or) realized by residents of the Republic of Belarus; 

  • financing non-resident companies except foreign banks for payment for goods from the list sold by non-resident  entities and purchased by the latter from residents  of the Republic of Belarus under export contracts  not covered  by export loans granted  within the frames of this Decree

  • financing non-resident banks with a view of their subsequent financing of customers for payment for goods from the list or works, services realized by residents or for  preliminary payment for goods from the list, or works, services produced and (or) realized by residents of the Republic of Belarus.

The Decree of the President of the Republic of Belarus dd 23.02.2016 No78 “On actions to increase  the efficiency  of social and economic complex of the Republic of Belarus” stipulates that the Development Bank is a single channel of granting export loans to non-residents.

The Resolution of the Council of Ministers of the Republic of Belarus dd 06.04.2016 No279 “On approving the Regulation on the procedure of  granting  export loans by joint-stock company Development Bank of the Republic of Belarus to  non-resident entities of the Republic of Belarus and a list of  products for the purchase of which the export loans are granted” determines  the procedure  of granting export loans by the Development Bank and approves of the list of products the deliveries of which  can be financed by means of  export loans. Basing upon the list of products stipulated in the  a.m. Resolution the key area for the Development Bank to  grant export loans is  funding services or deliveries of hi-tech goods. Export loans  for payment  for purchased goods not included into the  list can be  granted  on the basis of offers from republican  state administrative bodies or other   state-owned entities under the control of the Government, as well as from  regional executive committees and Minsk City Executive Committee upon agreement  with Ministry of Economy and Ministry of Finance. 

Terms of export loans granting:

Interest:

  • In foreign currency (except RUB) as per Commercial Interest Reference Rate (CIRR);
  • In RUB – at the rate of 2\3  refinancing rate fixed by the Central Bank of Russia .

Financing period:

  • up to 5 years;
  • when large-scale investment projects are funded – up to 10 years.

Amount of credit:

  • No less than USD 1 mln. (or an equivalent in other currencies).

Minimal amount of borrower’s participation with own funds in the project should be:

  • no less than 15% of the contract cost.

Requirements to borrowers:

  • financial stability, the ability to provide a collateral.

Other conditions of export credit granting:

  • One of the obligatory conditions of export credit granting is insurance of export risks with State support by “Eximgarant of Belarus” (in accordance with the Decree No 534). The cost of insurance to be borne by the borrower, depends on several factors, namely: country of importer’s registration, tenor of the loan, availability of collateral, etc. and averages to 1-4% per annum.

Total  Borrower’s expenses on debt servicing  consist of interest on  loan and insurance  costs.

The advantage of working with the Development Bank in this area is the existence of a codified simplified procedure of export loans granting.

The borrowers  can be both state owned and private companies.

In order for export credit application to be considered, the non-resident borrower has to submit a full set of documents.

The Development Bank actively promotes interbank cooperation based on the agreements reached with foreign banks that help to speed up the procedure of export  loan granting.

Thus, the Development Bank realizes the following schemes of organizing export financing:

Benefits for Belarusian exporters:

  • Sales volume increase; 
  • Expansion of geography of exports without debt growth; 
  • Preferential terms of sales (deferred payment, etc); 
  • Minimization of risks of defaulting on contracts; 
  • Acceleration of turnover of shipped goods.

The additional information regarding  means and mechanisms of export financing  is available from  the bank’s presentations (direct export financing, interbank export financing) and from the specialists of the Development Bank. 

Contacts:

In the area of direct export financing:

Tel.: + 375 17 309 68 32, 309 68 33, 309 68 57, 309 68 78

Fax: +375 17 292 70 16

In the area of interbank export financing:

Tel.: + 375 17 309 66 48, 239 11 33, 239 11 40 

Fax: + 375 17 292 70 16