International Ratings of Belarusian Banks

Posted on March 10th, 2010 in: Finances

	Belpromstroy bank	Belarus bank	Belagroprom bank	Belinvest bank	Belgazprom bank
Fitch Ratings Ltd.
Issuer default rating	B-	B-	B-	B-	B-
Short-term	B	B	B	B	B
Individual	D/E	D/E	D/E	E	E
Sustainability	5	5	5	5	5
Outlook	Stable	Stable	Stable	Stable	Stable
Moody’s Investors Service
Long-term rating of national currency deposits	Ba1
Short-term rating of national currency deposits	NP
Financial Stability Rating	E+
Outlook	Stable

Foreign Exchange Transactions in Belarus

Posted on March 10th, 2010 in: Finances

In line with applicable legislation in Belarus, non-residents can take out and bring in foreign exchange without any limitation. 

To execute some foreign exchange transactions, residents have to secure a permit from the National Bank of Belarus. (Such cases will be considered below).

Foreign exchange transactions involving both residents and non-residents can be broken down as follows:

- current foreign exchange transactions and

- foreign exchange transactions involving the movement of capital.

The following transactions are defined as current: foreign trade transactions which should be settled within 180 days; loans with a maturity of up to 180 days; and transfer and receipt of interest on investments and non-commercial transactions. Non-commercial transactions include the payment of salaries, stipends, pensions, taxes, and per diems. 

All other transactions are treated as foreign exchange transactions involving the movement of capital.

Foreign Exchange Transactions Abroad

No limitations are imposed on current foreign exchange transactions between residents and non-residents.

Foreign exchange transactions involving the movement of capital face a more restrictive regime. Below is the list of cases when individual citizens are obliged to secure a permit, while legal entities and individual entrepreneurs are not. 

Belarusian nationals, who spend less than a year abroad, must obtain a permit to execute foreign exchange transactions involving the movement of capital in the following cases: 

- acquisition of shares during their distribution among company founders or a stake in the charter capital of a non-resident entity;

- purchase of securities from a non-resident entity except for the acquisition of shares during their distribution among company founders;

- acquisition of real estate abroad and depositing of funds with foreign banks and non-bank institutions; and

- extension of loans whose maturity exceeds 180 days.

Belarusian nationals residing abroad for more than a year do not require a permit from the National Bank of Belarus to execute foreign exchange transactions involving the movement of capital unless these transactions relate to business deals in Belarus.

Legal entities and individual entrepreneurs do not require a permit to carry out the following foreign exchange transactions involving the movement of capital:

- payments by non-residents with regard to liabilities involving the transfer of real estate to a resident; 

- settlements under foreign trade contracts whose maturity exceeds 180 days and lease contracts for real estate in Belarus; 

- transactions involving securities issued by Belarusian residents;

- contributions by a non-resident to the charter capital of a Belarusian resident; 

- payment of dues to international organizations; and 

- transaction related to funding of the budget deficit, servicing of the foreign debt and settlements guaranteed by the Belarusian government.