BelVEB Bank now confirming bank in EBRD trade facilitation program
MINSK, 21 May (BelTA) – The Belarusian bank BelVEB and the European Bank for Reconstruction and Development signed an agreement as part of the EBRD trade facilitation program at an annual business forum in London. In line with the agreement BelVEB Bank is now a confirming bank, BelTA learned from Lyudmila Sats, Press Secretary of OAO BelVEB Bank.
As a confirming bank BelVEB will be able to confirm letters of credit opened by the banks that participate in the EBRD trade facilitation program for Belarusian exporters using EBRD guarantees. In turn, it will reduce the cost of the acceptance of letters of credit for the said companies, will expand opportunities for minimizing foreign trade risks, and will also encourage export operations of BelVEB clients.
Lyudmila Sats said that the EBRD trade facilitation program is designed to encourage international trade. As part of the program the EBRD provides guarantees to international commercial banks while undertaking political risks and the risk of mercantile non-payment for transactions, which are initiated by the banks in the list of EBRD operations countries. Many banks, which work hard to develop trade financing, are eager to become participants of the trade facilitation program.
OAO BelVEB Bank takes an active part in the program as an emitting bank for EBRD-secured letters of credit. As part of the program several BelVEB specialists have been certified for competence in trade financing by the International Chamber of Commerce in association with the EBRD.
Developing small and medium business in Belarus is another avenue of cooperation between BelVEB and the EBRD. Efforts are now being put into implementing the BelVEB-EBRD loan agreement on financing micro, small and medium businesses in Belarus.
The open joint-stock company Belvnesheconombank (BelVEB Bank) was registered by the National Bank of the Republic of Belarus on 12 December 1991. The shareholders include about 600 juridical persons and over 43,000 natural ones. The share of the state-run corporation Vnesheconombank (Russia) in the statutory fund of OAO BelVEB Bank is 97.49%. The Minsk city territorial state property fund owns 2.22%.