ANNOUNCEMENT 03 Mar 2014In March 2014, the government of Belarus announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 3 March 2014, the Council of Ministers of the Republic of Belarus (according to Decree No. 192) approved the conditions for issuance (without actually issuing) a state guarantee for the purchase of 10 locomotives by the company "Belarussian Railways".
According to the credit scheme, the company 'Belarussian Railways' would take a loan from ExIm Bank of China in order to finance the purchase of the locomotives. The loan's maturity is up to 12 years. The state guarantee is to cover the outstanding principal of a loan at the amount of 52 674 500 USD plus related to it payment of additional costs, such as interest rates.
Decree No 192 stipulates that the state guarantee is to be issued by the Government of Belarus after the signature of the credit contract between 'Belarusian Railway' and ExIm Bank of China. Since this condition was complied with, as a next step Decree of the Council of Ministers No. 421 of 31 May 2016 approved the actual issuance of the state guarantee in favour of ExIm Bank of China, related to a loan it granted to the state railway company 'Belarusian Railway' for the purchase of the locomotives. The official legal acts do not contain information with regard to the maturity date of the issued state guarantee.
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.