MINSK, 1 April (BelTA) - The Development Bank of Belarus will examine business plans and programs which are included in the country’s investment cycle, Belarus Prime Minister Mikhail Myasnikovich said at the general meeting of the Development Bank on 31 March, BelTA has learned.
Mikhail Myasnikovich stressed that the Development Bank should be another filter through which funding from both the bank and the state will be channeled into "really effective projects that can pay their way and shape the economy of tomorrow and for the medium and long term."
According to the Prime Minister, a number of government proposals to improve the work of the Development Bank have recently been supported by the head of state.
This year the Development Bank will prepare necessary amendments to regulatory acts in order to become the coordinator of all the government lending programs and activities from 2015. It is also going to be the sole operator of the government authorized to conduct tenders for these purposes.
According to the government-approved plan to finance state programs and activities in 2014, the Development Bank will provide 73 businesses and organizations in Belarus with investment loans to the tune of over Br6 trillion, including Br2 trillion for the completion of the projects which the bank started to fund in 2013.
In addition to the bank’s prospects the general meeting of shareholders discussed the results of the bank’s operation in 2013. The bank completed its main tasks. As of 1 January 2014 the loan portfolio exceeded Br19.3 trillion. Borrowing in the Belarusian capital market amounted to Br892 billion in 2013. Profits reached Br1,583.3 billion. The share of problem loans in the loan portfolio totaled 7.57% and did not exceed the limit.
Since the bank managed to secure targeted profits and due to the capitalization of the Development Bank in 2013, the institution met the target for the adequacy of regulatory capital. As of 1 January 2014 it amounted to 36.6% while the minimal target was 28.6%.
The Development Bank implemented a set of preparatory activities to penetrate the international capital market and strengthen cooperation with foreign credit and financial institutions. The bank concluded agreements with similar institutions in China, Russia and Southeast Africa and also with the largest commercial banks in Germany, the UK, Denmark, Mongolia, Slovakia and other countries. International credit ratings from Standard & Poor’s Rating Services and Fitch Ratings, which the bank has received, are fully compliant with the sovereign credit rating of Belarus.
The Development Bank of the Republic of Belarus is a specialized financial institution operating as a public joint-stock company. It was established by the Council of Ministers and the National Bank of the Republic of Belarus in line with presidential decree No. 261 of 21 June 2011 for the sake of raising the reliability of the country’s financial and credit system in addition to fueling the economic development of the state. The bank has been tasked with financing projects as part of government programs and with providing lending support to Belarusian exporters.