Business news

MINSK, 11 November (BelTA) – The mission of the International Monetary Fund (IMF) which is in Belarus on 9-19 November held a meeting at the Development Bank of the Republic of Belarus (DBRB) on 11 November, BelTA learnt from the press service of the bank.

The bank updated the mission on the main areas of its activity in 2015 and the achieved results. According to Chairman of the Board of the Development Bank Sergei Rumas, the bank continues its financing of big investment projects as part of state-run programs. As of 1 November the financing of the economy exceeded Br32 trillion. Since the beginning of the year the growth has totaled Br6.5 trillion (25.1%). The volume allocated for export promotion has exceeded Br3.1 trillion. Such progress has been ensured on the back of the reducing level in distressed debts to the bank. As of 1 November the percentage of distressed debts went down by 0.7% from the start of the year to make up 5.5%.

The IMF mission paid special attention to the work with the assets handed over to the bank by state banks. The bank conducts its standard management activity regarding the accepted assets in an aggregate amount of Br14.7 trillion. So far the assets to the total tune of Br3 trillion have been redeemed. The rest made up Br11.7 trillion as of 1 November.

The most significant event for the bank in 2015 was its vesting with the management functions regarding the assets of woodworking companies. The Finance Ministry transferred Br4.4 trillion worth of assets of three woodworking companies (Vitebskdrev, Mostovdrev and Novy Sverzhen Timber Mill). Before the end of the year the bank is expected to accept about Br8.3 trillion worth of assets of woodworking companies. These assets are not on the balance sheet but are placed in trust with the bank.

The mission was also briefed on the plans of the Development Bank to become the only channel for allocating loans to investment projects within state programs starting from 1 January 2016. The bank also plans to launch the selection of projects by competition. The parties discussed the transfer of the functions to regulate the financial market and supervise of the activity of the Development Bank to the National Bank of the Republic of Belarus from 1 January 2016.

Peter Dohlman, IMF Mission Chief for Belarus, informed representatives of the bank on the purpose and expectations of the mission. In his words, “the directed lending will be an important component part of the new program of the government and the IMF.”