Development Bank’s role in targeted financing of risky innovations explained
03.08.2026
MINSK (
BelTA) –The Development Bank is unique as a specialized financial institution, Roman Brodov, Chairman of the Standing Commission on Economy, Budget, and Finance of the Council of the Republic, said on the air of RTR-Belarus TV channel, BelTA has learned.
Roman Brodov noted that the Development Bank is a special institution. “It is an organization specifically created to finance projects that, based on standard market mechanisms, might simply never get off the ground. We are talking about complex, difficult-to-repay, and challenging-to-implement projects, for example, in remote areas where not every commercial bank is willing to venture. They may not offer sufficient returns because they involve launching new products, entering challenging markets, or adopting innovative technologies that, on the one hand, hold great promise but, on the other, carry significant risks, as they may fail to find an end consumer. Therefore, the Development Bank is quite a specific organization in terms of its financing approach. And, of course, it cannot be directly compared to commercial banks in terms of loan costs,” he said.
According to Roman Brodov, the Development Bank serves as a targeted instrument for implementing specific investment projects. “When the state identifies certain projects that require thorough expertise, analysis, detailed study, and proper structuring, but which are not commercial in the conventional sense, these are targeted projects, often unique in the country and we implement them. Therefore, the cost of resources for them will be special. That is the key reason why the cost of resources differs so significantly from what commercial banks offer," Roman Brodov explained.
He compared the work on each project supported by the Development Bank to aircraft manufacturing. ‘We have to break down every project into its smallest components, down to the individual parts. We examine which parts are still functional and can go back into the pipeline, which are no longer usable, and which require refinement or rethinking. That may involve additional costs. The bank’s expertise helps identify such issues,” Roman Brodov added.
Roman Brodov noted that the Development Bank is a special institution. “It is an organization specifically created to finance projects that, based on standard market mechanisms, might simply never get off the ground. We are talking about complex, difficult-to-repay, and challenging-to-implement projects, for example, in remote areas where not every commercial bank is willing to venture. They may not offer sufficient returns because they involve launching new products, entering challenging markets, or adopting innovative technologies that, on the one hand, hold great promise but, on the other, carry significant risks, as they may fail to find an end consumer. Therefore, the Development Bank is quite a specific organization in terms of its financing approach. And, of course, it cannot be directly compared to commercial banks in terms of loan costs,” he said.
According to Roman Brodov, the Development Bank serves as a targeted instrument for implementing specific investment projects. “When the state identifies certain projects that require thorough expertise, analysis, detailed study, and proper structuring, but which are not commercial in the conventional sense, these are targeted projects, often unique in the country and we implement them. Therefore, the cost of resources for them will be special. That is the key reason why the cost of resources differs so significantly from what commercial banks offer," Roman Brodov explained.
He compared the work on each project supported by the Development Bank to aircraft manufacturing. ‘We have to break down every project into its smallest components, down to the individual parts. We examine which parts are still functional and can go back into the pipeline, which are no longer usable, and which require refinement or rethinking. That may involve additional costs. The bank’s expertise helps identify such issues,” Roman Brodov added.