1-12620

Edict of the President of the Republic of Belarus

No 261 of June 21, 2011

[Amended as of December 31, 2015]

 

On Establishment of Joint-Stock Company “Development Bank of the Republic of Belarus”

 

In order to improve financing system for national government programs and socially significant investment projects:

1. To determine that:

1.1. Joint-Stock Company “Development Bank of the Republic of Belarus”, established by the Council of Ministers of the Republic of Belarus and National Bank (hereinafter referred to as the Development Bank):

shall not be deemed a bank or a non-banking credit and financial institution within the meaning defined in Articles 8 and 9 of the Banking Code of the Republic of Belarus, and at its establishment, reorganization and liquidation no legal requirements stipulated for banks and non-banking credit and financial institutions are applied;

shall carry out its activities in accordance with Constitution of the Republic of Belarus, laws of the Republic of Belarus, decisions by the President of the Republic of Belarus and the Government of the Republic of Belarus, the Articles of Association of Joint Stock Company “Development Bank of the Republic of Belarus” (hereinafter referred to as the Articles of Association) and other legislative enactments.

The laws on banking activities shall be applied to the Development Bank unless otherwise set forth herein.

1.2. The main objectives of the Development Bank shall be as follows:

financing of investment projects and also measures providing acquisition of goods for their transfer into financial lease (leasing) by executive decision of the President of the Republic of Belarus and (or) the Government of the Republic of Belarus as well as projects included into programs, approved by the President of the Republic of Belarus and (or) the Government of the Republic of Belarus (hereinafter referred to as the national programs and government sponsored schemes) by means of credit accommodation for their realization on its own behalf and at its own expense under the terms of maturity, availability against interest payments and recoverability in accordance with the procedures established by the Council of Ministers of the Republic of Belarus in coordination with the President of the Republic of Belarus, acquisition of debentures issued by legal entities participating in national programs and government sponsored schemes implementation and by other means which are not prohibited by applicable laws;

acquisition of banks’ assets (hereinafter referred to as the assets) according to the lists of such assets and subject to procedure, approved by the Council of Ministers of the Republic of Belarus;

procurement of export loans and credits for an amount not less than 1 million US dollars subject to the terms and conditions, determined in sub-clause 3.1 of clause 3 of Edict of the President of the Republic of Belarus No. 534 as of August 25, 2006 “On promotion of goods (works, services) export development”:

to organizations – residents of the Republic of Belarus for acquisition of goods manufactured or possessed by other residents of the Republic of Belarus into ownership and their subsequent transfer into leasing to organizations which are not residents of the Republic of Belarus;

to organizations which are not residents of the Republic of Belarus, including foreign banks, for payment of goods (works, services) sold by residents of the Republic of Belarus;

other objectives provided for by the Articles of Association.

The losses from export credits incurred by the Development Bank shall be reimbursed according to the procedure and in the amount determined by the Council of Ministers of the Republic of Belarus provided export risks are insured and supported by the state.

1.3. Accordingly to the requirements set forth by the applicable laws for banks and non-banking credit and financial organizations, without obtaining a special permission (license) to carry out banking activities, the Development Bank carries out the following:

financing of projects included into national programs and government sponsored schemes;

raising monetary funds of the budget to deposits;

opening and maintenance of correspondent accounts and other accounts the opening of which is directly related to accomplishment of objectives imposed on the Development Bank and banking transactions carried out by the Development Bank;

opening and maintenance of special accounts for accumulation of funds (hereinafter referred to as special accounts) to which legal entities participating in implementation of national programs and government sponsored schemes (hereinafter referred to as the project participants) shall transfer funds in amount required to repay debts before the Development Bank and also to pay a part of interest for loans and credits use from budget funds. The funds credited to the aforesaid accounts shall be used to repay the debts to the Development Bank, including to acquire foreign currency to repay the debt in foreign currency. After the debts are repaid the residue of the funds shall be transferred from the special account to the current (settlement) account of a project participant;

making settlements in non-cash form through correspondent and other accounts opened by the Development Bank in the National Bank of the Republic of Belarus and other banks;

foreign exchange transactions directly related to accomplishment of objectives imposed on the Development Bank and other transactions carried out by the Development Bank;

The Development Bank shall open no current (settlement) accounts to legal entities and individual entrepreneurs.

No other provisions set forth by applicable laws for banks and non-banking credit and financial organizations and regulating the procedures to guarantee soundness and financial reliability of banks as well as any other mandatory provisions and regulations are applied to the Development Bank

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*For the purpose of this Edict any credits provided by banks before January 01, 2011 accordingly to executive decisions of the President of the Republic or the Government of the Republic of Belarus shall be recognized as assets

1.4. The Development Bank is an agent-bank of the Government of the Republic of Belarus with regard to:

servicing and redemption of external government loans;

procurement, servicing and redemption of external and foreign loans raised against guarantees of the Government of the Republic of Belarus, provided for financing of national and government sponsored schemes and also for other purposes prescribed by executive decisions of the President of the Republic of Belarus;

1.5. The Development Bank acquires assets based on agreements of claim assignment out of the funds, which are at the disposal of the Development Bank (including those placed in the form of deposits with their subsequent repayment).

The state registration of the transfer of the pledge holder rights under the pledge agreement which is subject to the state registration (including the one under which mortgage is granted) shall be performed by any person, participating in the transfer of assets, filing an application signed by this person to the relevant state registration authorities; a copy of the agreement of claim assignment certified by the applicant shall be attached thereto. The agreement of claim assignment shall not be subject to state registration.

The bank, the assets of which the Development Bank acquires, shall bear all expenses related to state registration;

1.6. Where the Development Bank acquires the assets of banks it receives the right of claim for:

loan principal amounts provided by banks to fund the projects included into the national programs;

interests for the credit use (except for interest accrued prior to the claim assignment);

the pledged property of the debtor to the extent of the pledge holder’s rights under the pledge agreement;

1.7. No reimbursement (compensation of losses)of the interest on loans and credits granted by banks to finance national programs and government sponsored schemes regarding which the Bank obtains the right of claim is made from the budget, except in cases specified in the second and third parts of this sub-clause.

If the executive decision of the President of the Republic of Belarus or the Government of the Republic of Belarus, adopted in accordance with the executive decision of the President of the Republic of Belarus, provides that credit recipients pay no interest on loans and credits granted by the banks of the Republic of Belarus, the Development Bank shall be compensated losses out of the funds of the republican budget in the amount not exceeding 2 per cent per annum based on the corresponding executive decision of the President of the Republic of Belarus or the Government of the Republic of Belarus.

If the Development Bank acquires assets out of the funds raised at the market rate, including through the issuance of bonds, and banks issue credits under the decisions made by the President of the Republic of Belarus or the Government of the Republic of Belarus, in accordance with which these banks receive compensation for their losses, credit recipients shall be reimbursed a part of interest from the budget in the amount equivalent to the compensation granted. In this case, a part of interest shall be compensated as of the date of acquisition of the corresponding assets by the Development Bank. The funds designated to compensate a part of interest shall be credited to a special account of a credit recipient which is opened in accordance with sub-clause1.3 herein, followed by the subsequent transfer of these funds to the Development Bank on the terms and conditions specified in the credit agreement. Data and information on the amount of accrued interest on the credit provided by the credit recipient and approved by the Development Bank shall be the grounds to perform the aforesaid transfer.

In addition, an additional agreement to the credit agreement shall be entered into by and between the borrower and the Development Bank; therein a new interest rate on the credit is determined, which is calculated as the amount of the interest rate fixed in the credit agreement, and the interest rate at which banks’ losses are compensated;

1.8. Any guarantees of the Government of the Republic of Belarus, local executive and regulatory authorities granted to secure repayment of loans granted by banks to finance projects included into the national programs regarding which the right of claim is transferred cease to be effective from the date of the agreement of claim assignment coming into force.

The Government of the Republic of Belarus gives no performance guarantees regarding repayment of credits granted by the Development Bank to fund national programs and government sponsored schemes unless otherwise determined by the President of the Republic of Belarus;

1.9. Temporarily available cash assets of the Development Bank may be placed on accounts, including accounts in the form of contributions (deposits), in the National Bank of the Republic of Belarus and other banks, in government securities of the Republic of Belarus, securities of local executive and regulatory authorities, securities of the National Bank of the Republic of Belarus and bank bonds and also may be used in foreign exchange transactions.

The procedure to place temporarily available cash assets of the Development Bank as well as the ceiling amount of such assets shall be approved by the Council of Ministers of the Republic of Belarus in coordination with the President of the Republic of Belarus.

No temporarily available cash assets of the Development Bank may be placed in any objects other than those stipulated for in the first part of this sub-clause;

1.10. The Development Bank shall be entitled to:

carry out debt restructuring (principal debt amount and interests) of debtors under credits in accordance with the procedures established by the Government of the Republic of Belarus (including credits, whereby the right of claim has passed from banks to the Development Bank upon acquisition of their assets), provided to finance national programs and government sponsored schemes;

collect indebtedness without legal proceedings from debtors’ accounts and accounts of their borrowers under loans and credits provided out of the budget funds, raised to the deposits, and subject to return to the budget (including credits, whereby the right of claim has passed from banks to the Development Bank upon acquisition of their assets), arisen upon violation of the terms of repayment (return) of credits, payments of interests for using of these credits, basing on joint decision of the Prime Minister of the Republic of Belarus and the Chairman of the Management Board of the National Bank taken in terms of a specific debtor and its borrowers;

arrange and procure credits and loans;

get basing on agreements entered into with the banks the services in fund raising of national programs and government sponsored schemes and also in servicing of credits (including credits, whereby the right of claim has passed from banks to the Development Bank upon acquisition of their assets);

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* Provision of these services to the Development Bank by banks shall not be deemed as provision of legal services within the meaning defined in Edict of the President of the Republic of Belarus No. 450 of September 01, 2010 “On licensing certain types of activities” (The National Register of Legal Acts of the Republic of Belarus, 2010. No. 212, 1/11914).

 

issue securities accordingly to procedure provided for by applicable laws without regard to provisions stipulated in sub-clause 1.7 of Clause 1 of Edict No. 277 of the President of the Republic of Belarus of April 28, 2006 “On certain issues of securities market regulation" (National Register of Legal Acts of the Republic of Belarus No. 71,1/7529, 2006), within the limits of bonds emission volume to be determined by the Council of Ministers of the Republic of Belarus;

levy execution upon mortgaged property of a debtor and sell the collected property accordingly to the procedure provided for banks by applicable laws;

receive information and data from banks concerning banking secrecy under the assets to be acquired;

request accordingly to procedure established and gratuitously receive information required to carry out its activity from agencies of state administration, other organizations and physical persons;

get international technical assistance accordingly to procedure established by applicable laws, including those provided by means of transfer of skills, experience and technologies, monetary funds to pay financial and other consultants and render non-repayable aid (sponsor support) to accomplish tasks and objectives imposed on the Development Bank as well as other objectives not prohibited by applicable law;

to act as a pledge holder for privately owned land plots, a right for a land plot leasehold being a subject of a mortgage or a pledge respectively;

carry out dealer and broker activity at securities market subject to special permission (license) to carry out professional and exchange activities related to securities, issued by the Ministry of Finance without compliance with the requirements of sub-clause «в» of Clause 2 of Article 17 of Law of the Republic of Belarus “On Securities and Stock Exchanges” as of March 12, 1992, second clause of Clause 399 of Regulation on licensing of particular types of activity, approved by Edict No. 450 as of September 01, 2010 of the President of the Republic of Belarus “On licensing of particular types of activity” (The National Register of the Legal Acts of the Republic of Belarus, 2010, No. 212, 1/11914). In the course of the Development Bank activities on the security market any information shall be disclosed and financial statements shall be submitted in accordance with the laws;

accept guarantees and surety commitments as the security for discharge of obligations without taking into consideration the requirements specified in Clause 2 of Edict No. 296 as of May 05, 2006 of the President of the Republic of Belarus “On financial resources belonged to government organizations and business companies with share of the State in the authorized capital, use regulation” (The National Register of the Legal Acts of the Republic of Belarus, 2006, No. 73, 1/7551). In this case the restrictions set forth in the first part of Clause 2 of the aforesaid Edict shall not be applied to guarantees and surety commitments issued to the government organizations and business companies mentioned in this Clause by legal entities of non-government form of ownership as the security for discharge of their obligations to repay credits granted by the Development Bank;

1.11. The Development Bank shall have no right:

to disclose (pass to any third parties) information and data comprising bank secrecy, excluding cases set forth by legislative enactments;

to perform bank transactions with individuals;

to perform bank transactions with cash; 

1.12. Property of the Development Bank shall be formed by:

contributions into the Authorized capital of the Development Bank;

funds of the republican budget;

payments made to repay debts under the assets acquired from banks;

income gained as a result of the Development Bank’s activity;

voluntary property contributions, non-repayable aid (sponsor support) and donations, as well as other sources, which have not been prohibited by applicable laws;

1.13. Operating and capital expenditures of the Development Bank shall be paid out of its property;

1.14. The Development Bank has its seal and blank forms representing an image of the State Coat of Arms of the Republic of Belarus and its name;

1.15. Annual audit of annual accounting (financial) statements of the Development Bank shall be carried out by audit organization determined by the Council of Ministers of the Republic of Belarus upon results of established procedures for audit services procurement accordingly to applicable laws of the Republic of Belarus.

1.16. The Development Bank reflects all transactions it performs in the accounting statements as well as maintains accounting (financial) statements in accordance with the regulations of the National Bank regulating bank accounting and reporting. The procedure for presentation of accounting (financial) statements is determined by the Council of Ministers and the National Bank.

The Development Bank shall prepare and submit to the Ministry of Finance and the National Bank any other statements to the extent and in terms set forth by the latter;

1.17. taxation of incomes, as well as of operations performed by the Development Bank, including incomes and operations related to the acquired assets described in the third clause of sub-clause 1.2 of this clause, and assets acquired in accordance with other legal acts is effectuated in the order set forth by the Tax Code of the Republic of Belarus for banks.

Any expenses of the Development Bank related to sales of goods (works, services), property rights, extraordinary expenses as well as income shall be formed subjects to peculiarities stipulated for in the Tax Code of the Republic of Belarus for banks.

Expenses of the Development Bank, taken into consideration when imposing taxes, shall also include expenses related to engaging banks to service credits (to manage credits);

1.18. [Excluded]

1.19. The Development Bank acts a currency control agent to the extent and according to the procedure prescribed for banks in respect of transactions conducted by project participants and acting as such it is accountable to the National Bank;

1.20. The Development Bank shall form special reserves to cover possible losses on assets and transaction not reflected in the balance sheet according to the procedure determined by the Supervisory Board of this bank. For the purposes of taxation the expenses of the Development Bank on formation of such reserves are attributed to non-operating expenses. For the purposes of taxation income represented by amounts of reducing or canceling contributions to the special reserves shall be attributed to non-operating income of the Development Bank;

1.21. project participants shall open special accounts with the Development Bank at which they receive monetary funds in the amount necessary to repay the debt to the Development Bank;

 

1.22. investment objects (movable and immovable property) created (acquired) to implement government programs and activities funded by the Development Bank, are pledged to the Development Bank. In this case:

the Development Bank gets the right of lien from the date of concluding the corresponding credit agreement and such right is terminated in the event of termination of a credit obligation, of the total loss of the mortgaged property or foreclosure of such property by the mortgagee in the manner prescribed by law;

provided no payment is made to obtain the right to conclude a lease agreement, a capital structure(building, construction), a conserved capital structure under construction, located on a land plot in a permanent, temporary use or in leasehold by the mortgagor, is mortgaged without mortgaging such plot of land (or the right to lease fee is not charged, made without reference to a mortgage of land (as collateral for the right to this plot of land).”;

2. The Development Bank is exempted from state duty paid for state registration as well as for filing claims and initiating writ proceedings, filing appeal petitions, cassation appeals and appeals in exercise of supervisory power regarding court judgments on cases of collecting asset indebtedness to protect the rights and lawful interests of the Development Bank related to the assets.

21. The Development Bank shall be liable for its obligations with its whole property. In case of the property insufficiency the Republic of Belarus shall bear subsidiary responsibility under obligations of the Development Bank arisen from or in relation to issue, circulation and redemption of the Development Bank bonds.

22. The Development Bank may be a shareholder in Open Joint Stock Company “Belarusian Currency and Stock Exchange” without making any claims regarding its financial condition in the course of the procedure of being granted membership in the stock exchange, as well as when being its member.

3. Sub-clause 2.2 of Clause 2 of the settlement procedure between legal entities, individual entrepreneurs in the Republic of Belarus approved by Edict of the President of the Republic of Belarus № 359 as of June 29, 2000 (the National Register of Legal Acts of the Republic of Belarus No. 64, 1/1403, 2000; No. 1, 1/5174, 2004; No. 160, 1/9845, 2008) shall be amended by the following clause:

“for repayment of indebtedness in assets acquired by Joint-Stock Company “Development Bank of the Republic of Belarus” in accordance with the list of such assets and the procedure approved by the Council of Ministers of the Republic of Belarus and in credits granted by this company to fund projects included into programs subject to the approval of the President of the Republic of Belarus and (or) the Government of the Republic of Belarus;”.

4. The Council of Ministers of the Republic of Belarus shall:

4.1. within three months:

4.1.1. in cooperation with the National Bank initiate measures to establish the Development Bank according to the established procedure;

4.1.2. submit to the approval of the President of the Republic of Belarus the procedure for and the terms to finance by the Bank projects included into programs subject to the approval of the President of the Republic of Belarus and (or) the Government of the Republic of Belarus;

4.1.3. approve:

procedure for restructuring (principal debt amount and interests) of debtors under credits in accordance with the procedures established by the Government of the Republic of Belarus (including credits, whereby the right of claim has passed from banks to the Development Bank upon acquisition of their assets), provided to finance projects included into programs subject to the approval of the President of the Republic of Belarus and (or) the Government of the Republic of Belarus;

a list of bank assets to be acquired by the Development Bank and respective procedure for their acquisition;

4.2.contribute 19 billion rubles into the Bank Authorized capital out of the residue funds of the republican budget formed on January 01, 2011;

4.3. ensure acquisition of bank assets in accordance with the list of such assets approved by the Council of Ministers of the Republic of Belarus by the Development Bank within the term up to December 31, 2011;

4.4. if necessary, provide that the republican budget for the next year includes funds for the Bank to finance projects included into programs subject to the approval of the President of the Republic of Belarus and (or) the Government of the Republic of Belarus in addition to other sources;

4.5. submit to the approval by the President of the Republic of Belarus the procedure for placement of temporarily available cash assets of the Development Bank as well as the ceiling amount of such cash assets on the annual basis;

4.6. initiate measures ensuring that since January 01, 2012 the Development Bank commences financing projects included into programs subject to the approval of the President of the Republic of Belarus and (or) the Government of the Republic of Belarus.

5. The National Bank shall contribute 1 billion rubles into the Authorized capital of the Bank.

6. Within 6 months period the Council of Ministers of the Republic of Belarus shall ensure that the legislative enactments are brought into compliance with this Edict and take steps required to implement them. 

7. The State Control Committee shall be responsible for monitoring of this Edict implementation.

8. This Edict shall become effective as of the date of its signature.

 

 

President of the Republic of Belarus

A.Lukashenko

 

                                                                                                                                      

 

* unofficial translation *

© 2014 Joint-Stock Company “Development Bank of the Republic of Belarus”