Recent legal & business developments in Belarus, August 2010
1. Belarus placed additional Eurobonds in the amount of USD 400 mln. The coupon rate of issued Eurobonds is 8,75% and the redemption term is 2015. Profitability of additionally placed bonds to the moment of redemption is 8,25%. Interests shall be paid on the half-yearly basis on February 3 and April 3 yearly. The first payment of interests will be made of February 3, 2011. The Eurobonds received rating similar to the sovereign ratings of the Republic of Belarus - B1 (Moody's) / B+ (S&P). The Eurobonds passed the procedure of listing on Luxembourg Stock Exchange.
2. Belaruskalij was transformed into a Joint-Stock Company. Production association Belaruskalij was transformed into a Open Joint-Stock Company with 100% state capital. The decision was taken by the order of the State committee on property of the Republic of Belarus No 281, dated August 27, 2010. The Statutory fund of OJSC Belaruskalij comprises Br 5970 billion. The Concern Belneftehim shall ensure state registration of OJSC Belaruskalij and assume other measures in accordance with legislation.
It is also planned sell certain amount of shares of OJSC Belaruskalij subsequently. At the moment facilities of Belaruskalij comprise 8 mln. tons of potassium yearly. Belaruskalij is one of the world largest and CIS largest producer of mineral potash fertilizers. The production of Belaruskalij is delivered in more than 50 countries.
3. The refinancing rate of the National bank of the Republic of Belarus reduced to 11%. The refinancing rate was reduced on 0,5% to 11% on August 18. As it was mentioned by the National bank of the Republic of Belarus, another reduction of refinancing rate is directed on reduction of general level of interest rates in economics. In accordance with main directions of monetary politics on 2010 it is planned to reduce the refinancing rate to 9-12%.
4. The specialized finance agency will be created in the Republic of Belarus. The Head of the State Alexander Lukashenko conducted a working meeting on the issue of necessity of creation of specialized finance agency in the Republic of Belarus. As the Chairperson of the Board of the National bank declares, the specialized finance agency is necessary i.a. to ensure stable and steady functioning of bank system. As a result of the working meeting the President commissioned to complete documents on creation of the specialized finance agency in the Republic of Belarus in the nearest time.
5. The mechanism of venture financing starts functioning in September. The State committee on science and technologies of the Republic of Belarus worked out normative and legal base for functioning of venture financing system in the Republic of Belarus. The normative and legal act was highly appreciated on international level.
The proposals on cooperation in this direction from foreign investment funds are already received by the country. It is expected that on the first stage 30 – 50% of the structure of venture financing of projects will be comprised from state funds, Belarusian innovative fund. The preferential mechanisms will be created for investors, conducting activities in Belarus in this direction.
