Belarus to unveil national rating system concept in 2013

MINSK, 26 December (BelTA) – In 2013 Belarus will unveil the concept of national rating agencies, Chairperson of the Board of the National Bank of the Republic of Belarus (NBRB) Nadezhda Yermakova said during the Q&A phone session and online conference hosted by BelTA.

“Currently, this issue is being handled by the special interagency commission established by joint decision of the Government and the National Bank. The final version of the draft concept of the system and the use of national ratings is expected to be submitted to the head of state in 2013,” Nadezhda Yermakova said.

The basic piece of legislation in this area should be a law “Concerning ratings and rating activities in the Republic of Belarus” which will be developed on the basis of the concept. The main government body in charge of rating agencies, assignment and use of ratings shall be the Finance Ministry. It will be responsible for the accreditation of rating agencies. The National Bank will determine how to use the ratings in banking.

“There are plans to develop the favorable legal environment for Belarusian national rating agencies (developed by Belarusian participants), national rating agencies which will be set up in cooperation with foreign rating agencies as well as subsidiaries (representative offices) of foreign and international rating agencies,” Nadezhda Yermakova said. The operational principles of national rating agencies will be based on the international principles, she stressed. Issuers of securities will act as subjects for rating, so will be local authorities, banks and nonbank credit and financial organizations, insurance companies, borrowing entities financed under state programs and with the state support (including by the Belarusian Development Bank), other companies. The draft concept defines a wide range of stimuli for banks, insurance companies, and issuers which is to be signed into law in the future. Apart from that, the document will envisage a number of events for the development of a system of national ratings in Belarus. A strategic goal for the national rating system in Belarus is the development of the securities market, banking and insurance activity, domestic and foreign investment, the NBRB head said.