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Development Bank of the Republic of Belarus export financing solutions

The Development Bank provides next types of export financial support for foreign byers of Belarusian goods: 

  • financing not resident companies of the Republic of Belarus for payment for goods from the list , works, service realized by residents or for advance payment for goods from the list , works, service manufactured and (or) realized by residents of the Republic of Belarus; 
  • financing non-resident banks with a view of their subsequent financing of customers for payment for goods from the list , works, service realized by residents or for advance payment for goods from the list , works, service manufactured and (or) realized by residents of the Republic of Belarus .

Development Bank is a single channel of granting export loans to non-residents. The key area for the Development Bank to grant export loans is funding services or deliveries of hi-tech goods.

Terms of export loans granting:

Interest:

  • In foreign currency (except RUB) as per Commercial Interest Reference Rate (CIRR);

Financing period:

  • up to 5 years;
  • when large-scale investment projects are financed– up to 10 years.

Amount of credit:

  • No less than 1 mln. US Dollars (or an equivalent in other currencies).

Amount of borrower’s minimal participation in the project should be:

  • no less than 15% of the contract cost.

Requirements to the borrower:

  • financial stability, the ability to provide a collateral.

Other conditions of export credit granting:

  • One of the obligatory conditions of export credit granting is insurance of export risks with State support by BRUEEII ”Eximgarant of Belarus” ( on the terms of the Decree № 534). The cost of insurance, expenses on which are to be borne by the borrower, depends on several factors, namely: country of supplier’s domicile, tenor of the loan, availability of collateral, etc. and averages to 1-4% per annum.

Total debt expenses borne by borrower consist of interest on credit and insurance expenses.

The advantage of working with the Development Bank in this area is the existence of a codified simplified procedure of export credits granting.

Both state and private owned companies can be borrowers.

The Development Bank actively promotes interbank cooperation based on the agreements reached with foreign banks that help to speed up the procedure of export credit granting.


Example of export financing for British borrowers

PRICE of financing is a summ of a CIRR rate and an insurance rate.

CIRR rate is a subject to monthly change by the American Export-Import Bank, depends on the U.S. 10-Year Bond Yield (in USD), depends on the ECB 10-Year Bond Yield (in euro).

CIRR rate in USD (15/05/2017-14/06/2017) – for the loan period of up to 5 years – 2.44% annually.

CIRR rate in Euro (15/05/2017-14/06/2017) – for the loan period of up to 5 years – 0.31% annually.

 INSURANCE is a form of collateral. INSURANCE RATE (which is a subject of exact calculation by Beleximgarant – a Belarusian insurer) is 3.75% (at a time payment).

 If theoretically sharing the insurance load for the loan period of 5 years the price of financing will be 0.75 (3.75/5) + 2.44 = 3.19% annually in USD, or 0.75 (3.75/5) + 0.31 = 1.06% annually in euro.

 VERY CHEAP FOR BRITISH BORROWERS IN EURO!!!

 For additional information on methods and mechanisms of export financing, you may watch the Bank’s presentation or contact bank employees:

Gennadi Khomitch
(Head of export financing)
Tel. +375 17 239 11 43
E-mail: homich.g@brrb.by