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Commentary to Decree No. 218 of 7 May 2014

The terms of export crediting have been streamlined in Belarus. President Alexander Lukashenko signed corresponding Decree No. 218 “Concerning additions and amendments to decrees of the President of the Republic of Belarus” on 7 May.

In particular, the document introduces amendments to Decree No. 534 of 25 August 2006 “Concerning measures to promote the export of goods (works, services)”. With a view to raising the competitiveness of export crediting in Russian rubles the interest rate for export loans in Russian rubles will be reduced to two thirds of the refinancing rate established by the Central Bank of the Russian Federation.

Decree No. 534 will also regulate factoring operations.

In this regard the decree envisages that banks and non-bank financial organizations of Belarus can provide financing on factoring terms to the residents of the Republic of Belarus who implement export contracts with a discount. The size of the discount can be calculated in:

foreign currency (except for the Russian rubles) in the amount of 1/360 of the commercial interest reference rates (CIRRs) per day;

Russian rubles in the amount of 1/360 of the refinancing rate established by the Central Bank of the Russian Federation per day.

The decree has also introduced amendments to the provision regarding the order of compensation of losses to banks which issue export loans for the production and sale of goods (works, services), conduct investment operations abroad.