УКАЗ ПРЕЗИДЕНТА РЕСПУБЛИКИ БЕЛАРУСЬ

(Unofficial translation)

 

Edict of the President of the Republic of Belarus

No 252 of April 18, 2006
[Amended as of May 24, 2018]

On Approval of the Regulations on External State Loans and External Loans Attracted against Guarantees of the Government of the Republic of Belarus

With a view to improve the procedure of attraction, use and repayment of external state loans and external loans attracted against guarantees of the Government of the Republic of Belarus, I decree:

1. To approve the annexed Regulations on External State Loans and External Loans Attracted against Guarantees of the Government of the Republic of Belarus.

2. To establish that external state loans (credits) attracted prior to the entry into force of this Edict are used and repaid in accordance with the procedure of attraction, use and repayment of external state loans effective prior to the entry into force of this Edict.

3. The Council of Ministers of the Republic of Belarus, the National Bank, republican bodies of state administration, regional executive committees and the Minsk City Executive Committee shall, within three-month term, bring their normative legal acts in accordance with this Edict, and take other measures for its implementation.

4. This Edict enters into force from the day of its signing.

 

President of the Republic of Belarus

A. Lukashenko

  

APPROVED

Edict of the President
of the Republic of Belarus No. 252 of April 18, 2006
(as edited by Edict of the President of the Republic of Belarus No. 275 of June 27, 2011)

REGULATIONS
on External State Loans and External Loans Attracted against Guarantees of the Government of the Republic of Belarus

CHAPTER 1
GENERAL PROVISIONS

1. These Regulations determine the procedure for attraction, use and repayment of external state loans* (hereinafter – state loans) and external loans attracted against guarantees of the Government of the Republic of Belarus (hereinafter – guaranteed loans), which provide for:

attraction of state loans by the Republic of Belarus and the Government of the Republic of Belarus, including for granting to users of external loans;

attraction of guaranteed loans by residents of the Republic of Belarus (hereinafter – borrowers), including for granting to users of external loans;

issuing guarantees of the Government of the Republic of Belarus on guaranteed loans attracted by borrowers;

attraction of state loans by the Republic of Belarus through emission on external financial markets of state securities as state debt instruments;

repayment of state loans and guaranteed loans, restructuring indebtedness on them and execution of guarantees of the Government of the Republic of Belarus;

control over intended use and timely repayment of state loans and guaranteed loans;

recordkeeping of external state debt and external debt guaranteed by the Republic of Belarus.

______________________________

*For the purposes of these Rules, the terms are used in meaning determined in Article 2 of the Budget Code of the Republic of Belarus.

2. State loans and guaranteed loans are attracted, accordingly, within the limits of external state debt and external debt guaranteed by the Republic of Belarus being set in the law on the republican budget for the regular financial year from foreign states, their governments and administrative and territorial units in the person of authorized bodies, international organizations and other foreign legal persons (hereinafter – foreign creditors).

3. Conditions for attraction, use, service and repayment of state loans (with the exception of those indicated in indent 5 of clause one of these Regulations) and guaranteed loans are determined by the treaty, interbank agreement, individual credit agreement or another document containing the conditions of crediting and (if necessary) obligations of the Government of the Republic of Belarus on those loans (hereinafter – credit agreement).

Conditions for attraction, use, service and repayment of state loans attracted in accordance with indent 5 of clause one of these Regulations are determined in the prospectus of issue, contracts on providing legal services, services related to issue, circulation, redemption and servicing of state securities, recordkeeping of rights thereto, services on admission of securities for trading in stock exchange and other documents (hereinafter – emission documents).

A credit agreement or emission documents may (if necessary) contain provisions about the waiver of the Republic of Belarus of its immunity on disputes related to attraction, use, repayment and servicing of state loans and guaranteed loans.

CHAPTER 2
MAIN PURPOSES OF BORROWING AND tAKING DECISIONS
ON ATTRACTION of state loans and guaranteed loans

4. The attraction of state loans may be carried out by:

4.1. the Republic of Belarus:

for the purpose of covering the deficit of the republican budget;

for the purpose of granting to users of external loans for implementation of investment projects;

for other purposes provided by decisions of the President of the Republic of Belarus and/or laws;

4.2. the Government of the Republic of Belarus, including for granting to users of external loans:

for the purpose of realization of state programs and investment projects, solution of social and ecological problems, liquidation of consequences of natural disasters;

for other purposes provided by decisions of the President of the Republic of Belarus and/or laws.

5. Attraction of guaranteed loans is carried out by borrowers, including for granting to users of external loans:

for the purpose of import of raw materials, energy resources, other necessary goods and foodstuffs in the event of a critical situation with providing thereof in the republic;

for the purpose of implementation of investment projects and state programs according to priority areas of development of the republic’s economy;

for other purposes provided by decisions of the President of the Republic of Belarus and/or laws.

6. Decisions on attracting of state loans are to taken by:

6.1. The President of the Republic of Belarus:

for realization of purposes specified in sub-clause 4.1 of clause 4 of these Regulations;

in other instances when, in accordance with the legislation, decision about holding talks on the draft of a credit agreement and/or its signing must be taken by the President of the Republic of Belarus;

6.2. by the Government of the Republic of Belarus, upon agreeing with the President of the Republic of Belarus, for realization of purposes specified in sub-clause 4.2 of clause 4 of these Regulations.

7. Decisions on attraction of guaranteed loans are taken by the Government of the Republic of Belarus, upon agreeing with the President of the Republic of Belarus, when attracting those loans by borrowers for the realization of the purposes specified in clause 5 of these Regulations.

 

CHAPTER 1
ATTRACTION OF state LOANS BY THE REPUBLIC OF BELARUS
AND THE GOVERNMENT OF THE REPUBLIC OF BELARUS

8. Proposals for attraction of state loans are submitted to the Council of Ministers of the Republic of Belarus under the established procedure:

8.1. by the Ministry of Finance – for covering the deficit of the republican budget in accordance with indent 2 of sub-clause 4.1 clause 4 of these Regulations, with submission of the following documents:

the draft edict of the President of the Republic of Belarus on attraction of a state loan and repayment thereof;

decision of the Currency Credit Commission of the Council of Ministers of the Republic of Belarus on reasonability of attraction of the state loan and the amount thereof;

8.2. republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees or the Minsk City Executive Committee – for achieving purposes specified in indents 3 and 4 of sub-clause 4.1 of clause 4 of these Regulations, with submission of the following documents:

the draft edict of the President of the Republic of Belarus on attraction of a state loan and repayment thereof, granting powers to the bank-agent of the Government of the Republic of Belarus (hereinafter – bank-agent) for servicing that loan, concluding (as a rule) of a surety contract between the Ministry of Finance and a respective republic body of state administration, another state organizations subordinated to the Government of the Republic of Belarus, a regional executive committee or the Minsk City Executive Committee (hereinafter, unless otherwise determined – body-surety);

a draft of the loan agreement;

decision of the Currency Credit Commission of the Council of Ministers of the Republic of Belarus on reasonability of attraction of the state loan and the amount thereof;

opinion of the Ministry of Justice on the conformity of the draft loan agreement with the legislation of the Republic of Belarus (if it is the draft of a treaty or if the credit agreement contains a provision about the necessity of obtaining of such an opinion);

8.3. republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees or the Minsk City Executive Committee– for achieving purposes specified in sub-clause 4.2 of clause 4 of these Regulations, with submission of the following documents:

a draft of the resolution of the Council of Ministers of the Republic of Belarus on attraction of a state loan, including for granting to users of external loans, use and repayment thereof, granting powers to the bank-agent for servicing that loan, concluding (as a rule) of a surety contract between the Ministry of Finance and a body-surety;

documents specified in indents 3 – 5 of sub-clause 8.2 of this clause.

9. The procedure for directing republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees or the Minsk City Executive Committee of documents for consideration of the Currency Credit Commission of the Council of Ministers of the Republic of Belarus and for taking a decision by the latter is determined by the legislation.

10. Upon taking of a positive decision on attracting of a state loan in accordance with clause 6 of these Regulations, the Government of the Republic of Belarus shall submit, under the established procedure, a draft of a respective normative legal act to the President of the Republic of Belarus.

The draft of a normative legal act must contain the provisions concerning:

amount, time periods of attraction and repayment of the state loan, approval of the credit agreement, determining the official authorized to hold talks and to sign the credit agreement, with the right to introduce non essential changes therein – when attracting a state loan;

amount of the state loan and the time period of circulation of state securities – when attracting state loans through emission on external financial markets of state securities.

When taking, under the established procedure, a decision on attracting a state loan provided by indent 3 of part 2 of this clause, the Government of the Republic of Belarus shall:

approve emission document;

fix (if necessary) in emission documents, the waiver of the Republic of Belarus of immunities on disputes connected with emission, circulation, and redemption of state securities;

determine state bodies, and also officials, authorized to make legally meaningful actions, including to sign documents necessary for emission, circulation, and redemption of state securities.

11. Proposals of foreign creditors not being banks about granting state loans, which are received by republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees, the Minsk City Executive Committee, shall be sent by the latter to the bank-agent for making expert examination about possibility of concluding of a credit agreement.

Upon a positive conclusion of the bank-agent, the further consideration of these proposals is carried out in accordance with these Regulations.

CHAPTER 4
Attraction of guaranteed loans, GRANTING of guaranteed loans
to users of external loans

12. Proposals about attracting by the borrowers of guaranteed loans for achieving purposes specified in clause 5 of these Regulations, including for granting to users of external loans, are submitted, under the established procedure, to the Council of Ministers of the Republic of Belarus by:

republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus in subordination or supervision of which are (a part of which is made by) republican unitary enterprises and economic companies in statutory funds of which there is a stake being in the republican ownership;

regional executive committees and the Minsk City Executive Committee, in subordination or supervision of which are (a part of which is made by) communal unitary enterprises and economic companies in statutory funds of which there is a stake being in the communal ownership or other non-state legal persons.

The said state bodies and other state organizations submit:

A draft of the resolution of the Council of Ministers of the Republic of Belarus on attraction, use and repayment of a guaranteed loan, granting of a guarantee of the Republic of Belarus to the foreign creditor, granting powers to the bank-agent for servicing that loan, concluding (as a rule) of a surety contract between the Ministry of Finance and a body-surety;

documents specified in indents 3 and 4 of sub-clause 8.2 of clause 8 of these Regulations.

13. Upon taking of a positive decision on attracting of a guaranteed loan, the Government of the Republic of Belarus shall submit, under the established procedure, a draft of a respective resolution of the Council of Ministers of the Republic of Belarus for agreeing it with the President of the Republic of Belarus.

14. After the President of the Republic of Belarus agrees to and the Council of Ministers of the Republic of Belarus takes the decision on attraction of the guaranteed loan:

the borrower concludes the credit agreement with the foreign creditor and directs it to the Ministry of Justice to obtain a legal opinion (if the credit agreement contains a provision about necessity of obtaining such an opinion). The mentioned conclusion is presented by the borrower to the foreign creditor through the bank-agent;

state bodies and other state organizations mentioned in clause 12 of these Regulations submit, under the established procedure, a draft of the resolution of the Council of Ministers of the Republic of Belarus about granting of a guarantee of the Government of the Republic of Belarus with enclosure of two copies of a draft of that guarantee (in English and Russian (Belarusian)).

The guarantee of the Government of the Republic of Belarus is granted for the total sum of the guaranteed loan unless the credit agreement stipulates that such guarantee may be granted for a part thereof.

That guarantee is formalized by the Apparatus of the Council of Ministers of the Republic of Belarus on a special on special blank sheet with certain level of protection the form of which is approved by the Government of the Republic of Belarus and signed by the Prime Minister of the Republic of Belarus simultaneously with signing of the resolution of the Council of Ministers of the Republic of Belarus about granting the guarantee of the Government of the Republic of Belarus.

16. The bank-agent that attracted a guaranteed loan, including for granting to the user of the external loans, is a borrower under that guaranteed loan.

Proposals of foreign creditors not being banks about granting guaranteed loans, which are received by republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees, the Minsk City Executive Committee, are considered by the latter in compliance with the requirements laid down in clause 11 of these Regulations.

17. The Ministry of Finance shall:

keep record of granted Guarantees of the Government of the Republic of Belarus in accordance with the procedure established by the Council of Ministers of the Republic of Belarus;

send Guarantees of the Government of the Republic of Belarus to foreign creditors through the banks-agents;

if the credit agreement contains a provision about the necessity of obtaining of a legal opinion of the Ministry of Justice on the guarantee of the Government of the Republic of Belarus, obtain a respective legal opinion and send it along with the guarantee of the Government of the Republic of Belarus to the foreign creditor through the bank-agent.

CHAPTER 5
formaliztion OF CONTRACTUAL RELATIONS on guaranteed LOANS, and also on state loans and guaranteed loans granted to user of external loans.
RESTRUCTURING OF INDEBTEDNESS ON state LOANS and guaranteed loans

18. In the event of attraction of guaranteed loans, including for granting to users of external loans, the borrowers, users of external loans, respective republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees, and the Minsk City Executive Committee must, prior to the adoption of the decision about granting the guarantee of the Government of the Republic of Belarus, conclude a contract about the use and repayment of the guaranteed loan attracted by the borrower (granted to the user of external loan) with the Ministry of Finance and the bank-agent, and also in accordance with the decision of the Council of Ministers of the Republic of Belarus about attraction of the guaranteed loan – a surety contract between the Ministry of Finance and a body-surety.

19. In the event of attraction of state loans for granting them to users of external loans, the respective republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, regional executive committees, and the Minsk City Executive Committee must conclude a contract about the use and repayment of the state loan granted to the user of external loan with the Ministry of Finance and the bank-agent, and also in accordance with the decision about attraction of the state loan – a surety contract between the Ministry of Finance and a body-surety.

20. Contracts about the use and repayment of the guaranteed loan and state loan, specified in clause 18 and 19 of these Regulations, shall stipulate providing security of fulfilment of obligations by the borrower or user of external loan, their liability, the right of the Ministry of Finance to collect the indebtedness of the borrower or user of external loan from their accounts under the uncontested procedure in the instance of their failure to fulfil their obligations for reimbursement of guarantee payments to the republican budget.

The sample form of the mentioned contracts is to be established by the Ministry of Finance.

21. The payment for the state loan or guaranteed loan includes:

21.1. for the Republic of Belarus, the Government of the Republic of Belarus – preferential and obligatory payments (including commission fee and insurance premiums), interest for the use of state loan, other payments in accordance with the credit agreement or emission documents;

21.2. for the borrower or user of external loan:

preferential and obligatory payments (including commission fees and insurance premiums), interest for the use of state loan or guaranteed loan, other payments in accordance with the credit agreement;

payment for granting the guarantee of the Government of the Republic of Belarus and other payments to be made for guaranteed loans according to the legislation, unless otherwise established by the President of the Republic of Belarus;

commission fee of the bank-agent for performance of operations on servicing the state loan or guaranteed loan.

In case the attraction of the guaranteed loan for granting to the user of external loan is carried out the bank-agent, the payment for the guaranteed loan for the user of external loan includes also the margin of the bank-agent for performance of operations on attraction of the guaranteed loan.

22. Indebtedness to foreign creditors is repaid at the expense of:

means of the republican budget – for state loans;

own means of borrowers through banks-agents – for guaranteed loans, unless otherwise provided by decisions of the President of the Republic of Belarus or the Government of the Republic of Belarus;

own means of users of external loans – for state loans and guaranteed loans granted to users of external loans, unless otherwise provided by decisions of the President of the Republic of Belarus or the Government of the Republic of Belarus. In these instances users of external loans remit the means for repayment of the indebtedness on state loans to the republican budget, on guaranteed loans – to accounts of borrowers.

23. Guarantees of the Government of the Republic of Belarus granted on guaranteed loans attracted by borrowers for granting to users of external loans are also deemed to be the security for fulfilment of obligations by users of external credits.

The borrower, including the bank-agent that attracted the guaranteed loan for granting to a user of external loan, is not entitled to demand from that user providing of another security for fulfilment of obligation un this loan.

24. The decision on restructuring of the indebtedness on a state loan or a guaranteed loan is taken:

24.1. to a foreign creditor – in accordance with the procedure established in clauses 8 and 12 of these Regulations;

24.2. to the republican budget – in accordance with the procedure established:

in sub-clauses 8.2, 8.3 of clause 8 and clause 12 of these Regulations, through changing conditions of repayment and servicing of the state loan or guaranteed loan;

in Edict of the President of the Republic of Belarus No 88 of February 16, 2004 “On restructuring of the indebtedness of economic companies on payments to the republic and local budgets and on credit contracts and on forgiveness of debt”, through increasing of the statutory fund of the borrower or user of external loan being the economic company, within available sources of their own means with the transfer of shares (stakes) in the statutory fund equal to or exceeding the sum of indebtedness, into the ownership of the Republic of Belarus.

25. In the event of failure of the borrower or user of external loan, or the body-surety (if available) to execute within the established time periods obligations on state loans and guaranteed loans, these obligations shall be executed by the Ministry of Finance with subsequent reimbursement by the borrower of user of external loan of payments made by the said Ministry under the procedure determined in Chapter 6 of these Regulations.

CHAPTER 6
EXECUTION OF GUARANTEES of the government OF THE REPUBLIC OF BELARUS
on guaranteed loans

26. The Ministry of Finance – on the ground of a written notification from the borrower or user of external loan about the reasons of non-execution of a regular payment and of a petition from the respective republican body of state administration, other state organization subordinated to the Government of the Republic of Belarus, the regional executive committee or the Minsk City executive Committee to which the borrower or user of external loan is subordinated or by which is supervised ( of which the borrower makes a part), to be submitted to the said ministry not later than 15 days till the date of that payment – shall, within 10 days, consider financial condition of the borrower or user of external loan.

27. When the Ministry of Finance has taken the decision that the borrower or body-surety (if available) is unable to fulfil the obligations towards the foreign creditor on the guaranteed loan granted to the borrower or that hat the user of external loan or body-surety (if available) is unable to fulfil obligations towards the foreign creditor on the guaranteed loan attracted by the borrower for granting to this user, the mentioned ministry shall remit means to the account of the borrower for fulfilling of guarantee payments on the guaranteed loan before the foreign creditor at the expense of means provided in the republican budget for fulfilment of guarantee obligations on guaranteed loans.

For repayment of indebtedness on guarantee payments, the borrower or user or external loan is obliged to conclude with the Ministry of Finance a contract about the procedure of reimbursement of guarantee payments made from the republican budget in accordance with part one of this clause.

28. When concluding the contract mentioned in part 2 of clause 27 of these Regulations, the time period for reimbursement of guarantee payments shall be fixed within the financial year with charging the interest at the rate fixed by the law on the republican budget for the next financial year.

29. In the event of failure of the borrower or user of external loan to reimburse to the republican budget made guarantee payments, the Ministry of Finance shall collect, under the uncontested procedure, from the accounts of the borrower or use of external loan, the sum of indebtedness on the guaranteed loan indicated in the contract concluded in accordance with part two of clause 23 of these Regulations, in accordance with the procedure established by the legislation with charging of the interest at the rate fixed by the law on the republican budget for the next financial year.

When it is impossible to debit such means from the accounts of the borrower or user of external loan within three months, the said ministry shall, within 15 days, take measures for enforced collection through court proceedings of the property of the borrower or user of external loan for repayment of such indebtedness on the guaranteed loan.

30. The Ministry of Finance has the right:

to perform (collect under the uncontested procedure) payments on external state loans granted to users of external loans, on execution of the guarantees of the Government of the Republic of Belarus and/or return of payments made at the expense of reduction of expenses on other directions of using of the respective investment fund without a consent with the administrator of means of that fund in the event when the means of the investment fund are the source of execution of obligations in accordance with a suretyship contract;

to decrease the amount of financing of borrowers or users of external loans if they are financed from the republican budget by the sum of payments from the republican budget made or to be made and accrued interest in accordance with guarantees of the Republic of Belarus and contracts about the use and repayment of the guaranteed loan and state loan, mentioned in clause 18 and 19 of these Regulations.

The administrator of means of a respective investment fund, within a 14-day period from the moment of collection under the uncontested procedure, shall ensure the introduction, under the procedure established by the legislation, of a change into the estimates of expenses of the investment fund.

31. The means for execution of guarantees of the Government of the Republic of Belarus on guaranteed loans shall be annually provided for in the republican budget.

CHAPTER 7
control over on-purpose use and timely repayment of state loans and guaranteed loans.
recordkeeping of external state debt and external debt guaranteed by the government of the Republic of Belarus

32. The borrower or user of external loan is obliged to use the granted state loan or guaranteed loan according to its purpose, ensure execution of works and arrangements on the investment project financed at the expense of that state loan or guaranteed loan.

33. Control over on-purpose use and timely repayment of the state loan or guaranteed loan shall be carried out by the bank-agent, respective republican body of state administration, other state organization, regional executive committee or the Minsk City Executive Committee to which the borrower or user of external loan is subordinated or by which is supervised ( of which the borrower makes a part), as well as by the Ministry of Economy, the Ministry of Finance, and currency control bodies.

For this purpose, the borrower or user of external loan, together with the bank-agent, shall, by the 5th day of the month following the quarter, submit a quarterly report on the course of implementation of the business-plan of the investment project to the state body, other state organization, regional executive committee or the Minsk City Executive Committee mentioned in part one of this clause, which shall, by the 15th day of the month following the quarter, forward such reports together with their own opinion to the Ministry of Economy, the Ministry of Finance for analysis and taking measures for elimination of defects detected in the course of implementation of such business-plan or investment project.

The bank-agent shall inform the mentioned ministries about all violations or divergences in the use and repayment of the state loan or guaranteed loan by the borrower or user of external loan.

The bank-agent shall, monthly by the 5th day of the month following the finished month, submit to the Ministry of Finance a report on the situation with indebtedness on the state loan or guaranteed loan, according to the form established by that ministry.

35. The Ministry of Economy jointly with the Ministry of Finance shall, quarterly, not later than by the last day of the month following the quarter, direct to the Council of Ministers of the Republic of Belarus and the Committee of State Control a consolidated report about on-purpose and timely use by the borrowers or users of external loans of granted state loans and guaranteed loans, about the course of implementation of arrangements provided for by the business-plans and investment projects, and also about the measures taken to eliminate the detected deficiencies.

36. The Ministry of Finance shall:

keep records of external state debt and external debt guaranteed by the Republic of Belarus;

ensure registration of state loans and guaranteed loans;

ensure on-going control over the situation with payments on state loans and guaranteed loans;

monthly, not later than by the last day of the month following the finished month, direct a report on the situation with the external state debt to the Council of Ministers of the Republic of Belarus, the Committee of State Control, the Ministry of Economy, and the National Bank of the Republic of Belarus.

37. The Government of the Republic of Belarus shall quarterly, by the 10th day of the second month following the quarter, submit to the President of the Republic of Belarus a report about the situation with the external state debt.

 

* unofficial translation *