Family Funds Management

From 1 January 2015 the Republic of Belarus fixed an extra measure of a state support for the families at the birth, adoption of a third or subsequent children by providing a lump-sum non-cash facilities in the amount of USD 10,000 (hereinafter – the family capital).

In accordance with Decree of the President of the Republic of Belarus of 9.12.2014 No. 472 “On additional measures to support families with children", the family capital is provided to families for use in the Republic of Belarus in full or in parts in a non-cash order in accordance with the legislation in one or more areas: improvement of living conditions; education; social services, health care; generation of an accumulative (additional) pension of a retired mother (stepmother) in a two-parent family, a parent in a one-parent family.

The right to dispose the family capital facilities is granted upon the expiry of 18 years from the child’s date of birth, in connection with the birth, adoption the family has acquired the right to the assignment of the family capital.

The family capital is placed on deposit accounts of citizens in JSC "Belarusbank" that transfers them for managing to the Development Bank.

The Development Bank:

  1. performs actual management of the family capital resources on the principles of diversification and risk minimization, including investing into the individually selected projects (except for financing of their current activities) without the requirements of Decree of the president of the republic of Belarus of June 21, 2011 No. 261 "On the establishment of Open Joint-Stock Company "Development Bank of the Republic of Belarus". The procedure for the management of funds received from JSC "Belarusbank" shall be established by the Supervisory Board of the Development Bank;
  2. pays award to JSC “Belarusbank” for the exercise of functions relating to the opening and maintenance of deposit accounts of citizens, assessment and capitalization of interest on deposit accounts, funds transfer to the organizations referred by the manager (managers) of family capital in the declaration of the family capital disposal ;
  3. provides in the manner and amounts established by the Supervisory Board of the Development Bank upon the approval of the Ministry of Finance of the Republic of Belarus the annual allocation of part of the profit to a special fund of the Bank, designed for the accumulation of the income generated by management of a family capital (hereinafter - the special fund) for subsequent transfer of these facilities to the republican budget. The formation of a special fund is made in Belarusian rubles with their subsequent conversion into US dollars;
  4. at the end of each period of managing the family capital, provides the annual refund in US dollars to the Republican budget. The procedure, amounts and timing of these funds return are set by the Council of Ministers of the Republic of Belarus.

Thus, in 2015 the Bank has got another important task - efficient management of a family capital.