IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 07 Apr 2015 | Removal date: open ended
Still in force

Production subsidy

Presidential Decree No. 146 of 2 April 2015 introduces rules for state support that benefits juridical persons of Belarus, operating in its agricultural sector, for their purchase of modern machinery and equipment under the terms of financial leasing from the national leasing lessor, the state-owned "Promagroleasing".
 
The leasing conditions under Presidential Decree No. 146 can be summarised as follows:
 

  • Lessor: Promagroleasing

(In accordance with Decree of the President of the Republic of Belarus of 24 January 2013 No. 45, 62.5% of state shares of the Company were passed into the statutory fund of the state-owned Bank of Development of the Republic of Belarus).

  • Lessees: legal entities of the Republic of Belarus
  • Suppliers: Companies of the Eurasian Economic Union
  • Leased assets: modern machinery and equipment
  • Maturity of the leasing contract: 1 June 2023
  • Lessor's fee: 2% per annum
  • Investment costs of the Lessor for payment of interest rates, related to the use of credit resources:
    • interest-free for agricultural organisations*;
    • 7.5% per annum for other organizations.

This interest rate is below market rate because the refinancing rate of the Central Bank of Belarus used by commerical bank as a benchmark on top of which they compile their lending rates has been set at 25% per annum in 2015.

  • Payment currency: BYR
  • Collateral (if applicable): bank guarantee, pledge, security
  • Advance payment: not less than 10% of the machinery cost for agricultural organisations* and not less than 15% of the machinery cost for other organisations.

*The decree defines 'agricultural organisations' as 'legal entities, including their subdivisions, the main activities of which are agricultural production, fish farming, harvesting and processing of Belarusian agricultural products, provision of services in the area of crop and livestock production as well as veterinary, ameliorative works and provision of services for agriculture'.
 
The state-owned Bank of Development of the Republic of Belarus is to provide credits to "Promagroleasing" in order it to develop its leasing activity concerning the above-mentioned deals with maturity until 1 January 2023.
 
Article 3 of Presidential Decree No. 146 contains concrete monetary break-downs of the subsidies, distributed to selected regions of Belarus for the development by them fishery and agricultural activities under financial leasing. The subsidies' total amount is 231.2 billion BYR (ca. 15.01 million USD as per the official BYR/USD exchange rate for 2 April 2015, available at: http://www.nbrb.by/engl/statistics/rates/ratesDaily.asp?date=2015-02-02). 
Presidential Decree No. 17 of 20 January 2016 introduces changes in Presidential Decree No. 146 by increasing these subsidies with 8.65% in 2016 and by allocating additional 115 billion BYR (ca. 5.63 million USD as per the official BYR/USD exchange rate for 20 January 2016, available at: http://www.nbrb.by/engl/statistics/rates/ratesDaily.asp?date=2016-01-20) for development of the fishery and the agricultural industry.
 
Presidential Decree No. 146 also contains a list of agricultural machinery and equipment that is eligible under the state subsidisation scheme. However, it is not possible to identify their HS code in all cases. Therefore, conservatively, the GTA has indicated only the affected sectors.
 
Presidential Decree No.146 enters into force on the date of its official publication, 7 April 2015.
 
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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

435 Lifting & handling equipment & parts
8431 Parts suitable for use solely or principally with the machinery of headings 84.25 to 84.30.
843139 Other
441 Agricultural or forestry machinery & parts
8432 Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sportsground rollers.
843229 Other
843230 Seeders, planters and transplanters
843290 Parts
8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 84.37.
843311 Powered, with the cutting device rotating in a horizontal plane
843320 Other mowers, including cutter bars for tractor mounting
843330 Other haymaking machinery
843340 Straw or fodder balers, including pickup balers
843351 Combine harvesterthreshers
843352 Other threshing machinery
843353 Root or tuber harvesting machines
843359 Other
843360 Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce
843390 Parts
444 Machinery for mining, quarrying & construction; parts
8429 Selfpropelled bulldozers, angledozers, graders, levellers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers.
842911 Track laying
842940 Tamping machines and road rollers
842951 Frontend shovel loaders
842952 Machinery with a 360? revolving superstructure
842959 Other
8430 Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; piledrivers and pileextractors; snowploughs and snow blowers.
843039 Other
843041 Selfpropelled
843050 Other machinery, selfpropelled
8431 Parts suitable for use solely or principally with the machinery of headings 84.25 to 84.30.
843143 Parts for boring or sinking machinery of subheading 8430.41 or 8430.49
843149 Other

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