Edict of the President of the Republic of Belarus

No 600 of December 19, 2014

 

On Some Issues of Activities of the Joint-Stock Company
 “Development Bank of the Republic of Belarus”

 

In order to determine the terms and procedure of holding the Republic of Belarus secondarily liable for obligations of the Joint-Stock Company “Development Bank of the Republic of Belarus” arisen from issuance, circulation and redemption of the Development Bank bonds:

1. To establish that:

1.1. the Republic of Belarus shall bear secondary liability for meeting claims of individuals and legal entities which are bond holders of JSC “Development Bank of the Republic of Belarus” (hereinafter referred to as the investor) on redemption of the bonds’ par value and (or) payment of the bond yields upon insufficiency of monetary funds <*> of the given joint stock company (hereinafter referred to as the Development Bank);

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<*> For the purposes of this Edict the term “monetary funds of the Development Bank” shall be understood as monetary funds at its disposal including those held on the accounts with the National Bank and other banks, allocated into liquid assets, determined by the National Bank for calculation of requirements of secure functioning for banks and non-bank credit and financial institutions. 

 

1.2. the Council of Ministers of the Republic of Belarus shall act on behalf of the Republic of Belarus in terms of bearing secondary liability for obligations of the Development Bank;

1.3. the Republic of Belarus shall not bear secondary liability for obligations of the Development Bank on redemption of issued bonds before maturity, except when such obligations are stipulated in the conditions of bonds issuance, or when the decision to reorganize or liquidate the Development Bank has been made, or when an economic court has initiated insolvency (bankruptcy) proceedings against the Development Bank;

1.4. in case of failure to redeem bonds and (or) pay bond yields out of its funds, the Development Bank shall notify the investor within 15-day period prior to expiry of the corresponding obligations as well as send a letter to the Government of the Republic of Belarus on necessity of fulfilling the Development Bank’s obligations by the Republic of Belarus together with the corresponding draft resolution of the Council of Ministers of the Republic of Belarus and documents proving effectiveness and sufficiency of measures taken by the Development Bank for independent fulfillment of its obligations.

Within 30 calendar days upon receiving the letter from the Development Bank the Council of Ministers of the Republic of Belarus shall adopt the resolution of the Council of Ministers of the Republic of Belarus on fulfillment of Development Bank’s obligations by the Republic of Belarus determining the sources of fulfilling such obligations;

1.5. should secondary liability arise, the Republic of Belarus shall fulfill the obligations of the Development Bank towards the investor within 60 calendar days upon entering into force of the resolution of the Council of Ministers of the Republic of Belarus on fulfillment of Development Bank’s obligations by the Republic of Belarus;

1.6. should secondary liability for the Development Bank’s obligations arise, payments made out of the republican budget shall be subject to reimbursement by the Development Bank within 12 months upon fulfillment of the Bank’s obligations towards the investor by the Republic of Belarus according to the repayment plan approved by the Ministry of Finance.

In case the Development Bank fails to redeem payments made out of the republican budget in due time, payments that are to be made to the Development Bank from the republican budget in accordance with the law shall decrease by corresponding amounts; 

1.7. the right to hold the Republic of Belarus secondarily liable for the Development Bank’s obligations in accordance with the procedure established by this Edict does not exclude the right of the investor to file a suit against the Republic of Belarus.

2. The Development Bank shall inform the Ministry of Finance and the National Bank on: 

the planned issuance of bonds and periods of bonds’ repayment on a quarterly basis not later than on the 5th day of the month following the reporting quarter;

bonds in circulation and periods of their repayment on a monthly basis not later than on the 5th day of the month following the reporting month.

The format of reporting is subject to the approval by the Ministry of Finance and the National Bank.

3. [Translation is not provided]

4. The Council of Ministers shall be responsible for taking measures for implementation of this Edict.

5. Control over implementation of this Edict shall be entrusted to the State Control Committee.

6. The Edict shall enter into force after its official publication.

 

President of the Republic of Belarus

                                                                                                         A.Lukashenko

 

* unofficial translation *