Family Funds Management

Since January 1, 2015 a new additional measure of government support to families giving birth to or adopting a third or successive child has been established in the form of a one-time non-cash payment of money funds in the amount of USD 10000 after birth (adoption) of the third or successive child during 2015-2019 (hereinafter –family fund).

Pursuant to the Decree of the President of the Republic of Belarus dd December 9, 2014 No572 “On additional measures of state support to families with children” family fund is given to families to be utilized within the territory of the Republic of Belarus in full or in parts as non-cash payments in line with the legislation for one or several of the following purposes: housing improvement; getting education; receiving services in the sphere of social facilities, healthcare; accumulation of mother’s (step-mother’s) funded (additional) pension in two-parent family, or parent’s, adoptive parent funded pension in a single-parent family.

The right to dispose of family fund shall arise upon expiry of 18-year period since the date of birth of a child by whose birth or adoption the family acquired the right for family fund allocation.

Family fund can be utilized earlier (irrespective of the period of time expired from the date of family fund allocation) for one of the following purposes:
-construction (reconstruction) or purchase of one-family houses, flats in apartment houses or blocked residential buildings, repayment of debts on loans granted for such purposes and payment of interest for using such loans by a family member (members) from the list of persons in need of improvement of their living conditions, or those who were in such list as of the date of loan agreement conclusion;
- getting of the 1st grade higher education, vocational secondary education in state educational establishments on a fee-paying basis by a family member (members);
- receiving by a family member (members) of the following medical services rendered by healthcare institutions:
- granting for medical use of medical devices others than those included into Republican sheet of medical devices for complicated and high-tech surgical treatments in cardio, neuro surgery, oncology and (or) pharmaceuticals others than those included into Republican sheet of pharmaceuticals;
- getting dental services (dental prosthetics, implant placement with further prosthetics, orthodontic occlusion correction).

The family funds are placed on deposit accounts of citizens in JSC "JSSB Belarusbank" that transfers them for management to the Development Bank. Thus starting from 2015 the Development Bank has been fulfilling one more important task – efficient management of family funds in US Dollars.

The Development Bank:

  1. pays interest income on financial instruments including bonds acquired by JSC "JSSB Belarusbank" at the rate equal to interest rate on deposits “Family fund”;
  2. actually manages the family funds received from JSC "JSSB Belarusbank" on the basis of diversification and risks minimization. The procedure of funds management and financial instruments of investing funds received from JSC "JSSB Belarusbank" shall be established by the Supervisory Board of the Development Bank;
  3. pays fees to JSC “JSSB Belarusbank” for performing functions related to deposit accounts opening and maintaining, interest accrual and capitalization, funds transfer to the accounts of entities specified by the family funds manager (managers) in an application for family funds disposal. Such fees are taken into account when the gross profit of the Development Bank is calculated for profit tax purposes;
  4. does not recognize profit (income) in the amount to be transferred to a special fund when calculating the part of profit (income) to be transferred to republican budget from shares in republican ownership pursuant to the Decree of the President of the Republic of Belarus dd December 28, 2005 No637 “On the procedure of remittance to the budget of the part of profits of state unitary enterprises, state associations – commercial organizations, as well as income from business entities’ shares ( stakes in equity) in republican and communal ownership and on formation of the special budget fund of national development”, and when allocating profits to other funds of the Development Bank and as dividends to shareholders;
  5. in the manner and volume fixed by the Supervisory Board of the Development Bank under the agreement with Ministry of Finance annually transfers part of the profits to Bank’s special fund for accrual of the parts of profit received from family funds management (hereinafter – special fund) to be further transferred to the republican budget. The special fund is formed in Belarusian rubles with subsequent conversion into US Dollars;
  6. at the end of each period of managing the family funds, provides the annual refund in US dollars to the republican budget. The procedure, amounts and terms of these funds return are set by the Council of Ministers of the Republic of Belarus;
  7. performs obligations on financial instruments of the Development Bank available to JSC "JSSB Belarusbank" which arise from exercising a right on utilizing family funds by persons who were granted the right to dispose of the family funds (including early disposal) by local executive and regulatory bodies.