MINSK, 29 July (BelTA) – The Development Bank of the Republic of Belarus plans to raise around €1.2 billion in external resources in 2016-2020, the Bank's press service told BelTA following a meeting of the Supervisory Board of the Bank chaired by Belarus Prime Minister Andrei Kobyakov.
The meeting discussed the Development Bank's strategy up to 2015, and approved the strategic plan for development of the Bank in 2016-2020. “In part of borrowings, the Development Bank is set to attract foreign resources at the lowest cost available. In general, the Bank is going to raise around €1.2 billion in external resources in 2016-2020,” the Bank informed.
The 2020 strategy consolidates the position of the Bank as a national financial institution of development. All new investment projects under government programs will be financed through the Development Bank. Projects will be selected on a competitive basis. Gradually the role of the Bank as an operator of directed lending will be declining and the role as an institute of development will be growing. Portfolio of investment loans will increase 1.76 times by the end of 2019.
In addition, an institutional structure will be set up at the Development Bank to coordinate the state export promotion policy.
Supporting small and medium-sized enterprises will be further regarded as a strategic priority. The Bank will work to provide SMEs with systematic financial and non-financial support. For instance, it will continue expanding the range of financial products offered within an ongoing program. In late 2016, the Bank will establish an additional line of credit for SMEs using the resources from the World Bank. Resources will also be offered using funds allocated by the China Development Bank. In the medium term, the Development Bank of Belarus will develop a guarantee mechanism for SMEs.
“Besides, the Bank continues administering family capital and the assets of woodworking enterprises. To achieve the goals set out in the strategy, we need to clarify the mandate of the Development Bank, which will be done by the end of this year,” the press service said.
As for the results of the 2015 strategy, the Bank achieved all its objectives. The volume of the loan portfolio exceeded Br32.5 trillion (pre-redenomination), while the objective was Br30 trillion. Over $800 million was borrowed from the international capital market, and the goal was $500 million. The share of bad debts in the total loan portfolio amounted to 5.4% with the maximum limit set at 7%. The high return indicators and the balanced policy with respect to active transactions enabled the Bank to reach a capital adequacy ratio of 35%. The objective was at least 20%.
OAO Development Bank of the Republic of Belarus is a specialized financial institution. The founders of the bank are the Council of Ministers and the National Bank of Belarus. The state owns the controlling interest in the bank. The bank has been tasked with financing long-term and capital-intensive investment projects, state programs and activities.
