AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
In March 2013, the Belarusian government allowed a second Russian bank to provide export financing for Belarusian machinery exports to Russia.
With Decree 176 of March 13, 2013, the Council of Ministers of Belarus included VTB Bank in a state financial scheme. The objective of this measure is the provision of loans at advantageous terms to buyers of Belarusian machinery on the territory of the Russian Federation. Since 2009 this Belarusian state support scheme was only made available through Sberbank Russia. The favourable credit terms are guaranteed on the basis of Decree 466 of September 24, 2009 through partial reimbursement of interest payments by the Belarusian Ministry of Finance.
An official press release of the Council of Ministers of Belarus explains that the goal of attracting a second bank (VTB Bank) in this state initiative is to promote the Belarusian goods on the Russian market and to increase the Belarusian exports.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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