The Development Bank of Belarus has been granted the status of government agent for external borrowing

29 January, Minsk /BELTA/. The Development Bank of Belarus has been granted the status of the government's agent for external state and guaranteed borrowings. This was announced to journalists on 28 January by Chairman of the Board of the Development Bank of Belarus Sergey Rumas, as reported by a BELTA correspondent.

On 24 January 2013, the Head of State signed Decree No. 45, which significantly expands the bank's powers and provides new tools for further development, noted Sergey Rumas.

Thus, the bank receives strong support when entering financial markets in the form of the government's subsidiary liability for securities issued by the bank. This will allow the Development Bank's securities to be designated as a separate type of security, comparable in reliability to government treasury bonds, and to make them attractive to investors.

"At the same time, the bank receives the status of the government's agent for external state and guaranteed borrowings. The Development Bank is vested with the functions of an export-import bank and is granted the right to export financing for large projects costing over $1 million," Sergey Rumas clarified.

For more focused work on growth points, the bank's financial potential is concentrated on investment projects. The bank will be able to respond more flexibly to the diversity of economic relations by obtaining the right to perform a number of new banking operations, the key of which are foreign currency operations.

"By the end of 2015, the bank will become the main credit institution financing state-significant investment projects. To this end, the largest projects planned for implementation in the country are already under expert review at the bank. As for the current year, we plan to triple our own loan portfolio," noted Sergey Rumas.

By 1 March 2013, the controlling stake in Promagroleasing will be transferred to the bank, which will allow the formation of a complete export stimulation structure based on the bank. "It will include comprehensive structuring of the entire transaction, attracting financing resources for foreign currency projects, preferential export lending, and leasing of equipment," noted Sergey Rumas.

In the medium term, the Development Bank aims to attract long-term funding to the country's economy at the lowest interest rates on the open market among financial institutions in Belarus, he emphasized. "This will require extensive work to build long-term relationships with external partners. The first steps have already been taken," noted Sergey Rumas.

For example, a cooperation agreement has been signed with the China Development Bank. Negotiations are underway on the Development Bank's participation in project implementation using the long-term resources of the China Development Bank. Working relationships are being established with development institutions of other countries, primarily with VEB.RF (Russia) and the Development Bank of Kazakhstan. The Bank is actively participating in roadshows related to borrowing on the international market. At the end of March, the bank plans to publish its IFRS financial statements. Work has also begun to obtain ratings from leading international rating agencies.

OJSC "Development Bank of the Republic of Belarus" was established in 2011 by decree of the President. The main goal of the bank is to finance state programs and socially significant investment projects. The founders of the bank are the Council of Ministers and the National Bank of Belarus. The Chairman of the Board of the Development Bank is Sergey Rumas. In 2013, the bank intends to issue at least Br5.5 trillion in loans for the implementation of investment projects. According to the Ministry of Finance, based on its performance in January-September 2012, the Development Bank was among the most profitable open joint-stock companies in Belarus, earning Br2.5 trillion in net profit. -0-