Support to SMEs

In August 2014 the Development Bank initiated, developed and launched a basically new program of financial support to small and medium enterprises (SMEs). Its main objective is to ensure and enlarge access for SMEs to credit resources, as well as to conducting financial lease (leasing) operations for investment projects at different stages of their business  development. The key program’s instrument is granting credits at an affordable price and with transparent and clear requirements to borrowers.

The areas where  the Development Bank renders  support to SMEs are not constant and change depending on the priority government goals. In the end of 2016  the Development Bank  differentiated the product range in line with  priority areas of SMEs development in the Republic of Belarus (support  to start-up companies, innovations. Exporting enterprises, etc. See the section Catalogue of program products); together with  funding  of  manufacturing  and service areas, financing of  trading enterprises also became possible .

Practical implementation of the program is carried out with the participation of commercial partner banks and a leasing company (JSC Promagroleasing) that have experience in cooperation with small and medium enterprises and implies the use of a two-level system:

  1. on the first level the Development Bank provides financial resources to partner banks and a leasing company, selected by established criteria ;

  2. on the second level the partner banks and a leasing company select borrowers under the criteria agreed upon with the Development Bank, evaluate their financial condition and proposed projects, as well as decide on granting loans at a specified marginal rate.

Besides, in order to  expand the number of potential program participants an additional  mechanism was specified providing for support through  financing of leasing companies by partner –banks to be followed by  leasing out of purchased property to  SMEs. Thus, the SMEs now have the possibility to receive financing not only directly in banks, but also through leasing entities of the Republic of Belarus.

There are 11 partner banks participating in the program: (JSC “Belgazprombank”JSC “Belarusky Narodny Bank”JSC“Belinvestbank”JSC"Belarusbank"CJSC“MTBank”CJSC “Alfa-Bank”"Priorbank" JSC, "Bank Dabrabyt" JSC,  JSC "Belagroprombank", OJSC“Paritetbank”, CJSC BTA Bank) and leasing companies JSC Promagroleasing, JLLC Raiffeisen-Leasing and LLC ASB-Leasing.

   The priority objectives of providing financial support to SMEs operating in the manufacturing and service sectors are the following:

  1. Implementation of new technologies;

  2. expansion of export potential, import-substituting production;

  3. creation, enlargement of physical infrastructure;

  4. acquisition, reconstruction, modernization, construction, capital repairs of fixed assets.

Within the frames of financial support program the investment projects in the following businesses are not to be financed:

  • production of weapons and (or) military equipment;
  • production and export of tobacco products;
  • alcoholic beverages production.

The partner bank grants loans to SMEs in terms of specification of banking products created by the Development Bank.