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08 August 2022, 09:00

Belarus' Development Bank chief speaks about results of export support measures

An archive photo
An archive photo

MINSK, 8 August (BelTA) – Clients have become more active, Chairman of the Board of the Development Bank of the Republic of Belarus Aleksandr Yegorov said on the air of the Belarus 1 TV channel, BelTA informs.

“If we talk about export support, customers have become more active, of course. The rise in activity was achieved, among other things, due to amendments to Decree No. 534. This has to do primarily with the provision of pre-export loans - loans to buy raw materials, to manufacture and export products. Secondly, the collateral requirements have been lifted. Now, if a special account is opened with the Development Bank, export earnings must be credited directly on this special account, and in this case a collateral is not needed. Yet, the main thing is that the minimum amount requirement has been abolished. Previously, it stood at $200,000, now there are no restrictions. For example, in 2022 we approved applications worth approximately Br350 million for about 45 clients; Br1.1 billion of loans were issued in seven months, up almost 30% year-on-year,” Aleksandr Yegorov said.

According to him, this is one of the few effective financial instruments. “First and foremost, it is very flexible - you can quickly understand what markets you need to supply products to. Second, manufacturers can hardly increase output if they do not have working capital, while the market is growing, prices are rising and the delivery time is increasing. Due to the loan, companies will get this working capital to quickly produce their goods and sell them at a high price. The figures show that the export of the Republic of Belarus is growing. As far as the export to Russia is concerned, it hit $2 billion within a month for the first time; it happened in June. We have nearly reached a surplus in trade in goods. We have long had a surplus in the trade in goods and services, while the trade surplus in goods is a truly unique achievement, and here two factors played a role. Firstly, prices are rising. Secondly, the output of products that have nothing to do with raw materials like potash fertilizers, oil products, is growing. The output of products with a high added value is growing. This naturally has an impact on the economy and finances of an enterprise,” Aleksandr Yegorov said.

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