ANNOUNCED AS TEMPORARYNo
With Decree 652 of 24 July 2013, the Council of Ministers of Belarus authorized the purchase of 227 combine harvesters to be delivered to local agricultural producers. The state unitary enterprise"Gomselmash"(amulti profile manufacturer, producing agriculturaltechnique for cultivating and harvesting of crops) shall deliver the machinery by 1 August 2013. The beneficiaries of this state intervention are granted deferred payment until 1 May 2014, which is advantageous for the dynamics of their working capital.
Furthermore, the decree stipulates that Belarusbank will provide in 2013 a 12 months foreign-currency denominated loan to "Gomselmash", equivalent to 500 billion BYR (1 USD = 8800 BYR as of 30 July 2013) with interest rate not more than 9 per cent per annum. The purpose of the loan is the production of combined harvesters in line with the complex programme for modernisation of the existing and creation of new highly productive work places in "Gomselmash" in 2012-2015. The Belarusian government will reimburse 50 per cent of the credit interest rates payments, but not more than 4.5 per cent per annum to "Gomselmash".
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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