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STATE SECURITIES MARKET

 

The Ministry of Finance of the Republic of Belarus acts as the issuer of state securities in the country (basic principles of state securities emission in the Republic of Belarus as of 18.12.1997 #1673)

In compliance with the Banking Code of the Republic of Belarus, the National Bank operates as the central depositary and the fiscal agent of the Council of Ministers on the distribution and redemption of bonds.

Ways of acquiring state securities in the Republic of Belarus:

1.                 At the primary market (Directions on the emission, circulation and redemption of short-term state bonds of the Republic of Belarus and long-term state coupon bonds, as of April 14, 1998, #62; Regulations on conducting closed auctions on the distribution of short-term state bonds of the Republic of Belarus and long-term state coupon bonds, as of November 13, 2000, #30.8/22P):

a.                Purchasing securities at closed auctions, conducted by the National bank through primary investors;

b.                Distributing bonds, which were not allocated before, at the prices set by the Ministry of Finance of the Republic of Belarus;

c.                Purchasing directly from the Ministry of Finance (terms are being determined by the Ministry of Finance).

 

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National Centre for Marketing and Price Study

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Online Catalogue of Belarusian Goods, Services and Companies
at the National Centre for Marketing and Price Study

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GUIDEBOOK ON DOING BUSINESS IN BELARUS
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Internet resource on investment potential of Belarus

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Belarus Investment Projects

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Belarus Innovation Projects

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Banks - participants of closed auctions and additional distributions of state securities need to obtain the status of primary investors, as well as a license from the State Securities Committee for conducting commercial and intermediary transactions. Today twenty-one banks of the Republic of Belarus are primary investors at the state securities market.

2.                 At the stock exchange (Regulations of the Council of Ministers and the National bank of the Republic of Belarus on the secondary state securities market of the Republic of Belarus and the National bank securities, as of November 1998, #1681/63; Regulations on conducting transactions with state and National bank securities at the public corporation "Belarusian currency and stock exchange" as of 23.11.1999, #42; trading day regulations on conducting transactions with state and National bank securities at the public corporation "Belarusian currency and stock exchange" as of 01.03.2000):

 

Professional participants of the securities market of the Republic of Belarus, members of the stock section can conduct transactions at the exchange. Main types of transactions:

·                    Transactions before redemption (one of the participants acquires bonds before redemption)

·                    REPO transactions (conducted by banks - participants of auctions with the following liabilities:

·                    For the seller - redeeming the bonds at a later date.

·                    For the buyer - selling the bonds at a later date.

 

The market of REPO transactions exists since the year 1995. The main types of transactions are:

·                    The National bank daily deals with the liquidity of primary investors' banks by conducting REPO transactions.

·                    Inter-dealer REPO transactions are also conducted at the stock exchange.

 

At the public corporation "Belarusian currency and stock exchange" auctions are conducted daily from 10:30 a.m. till 15:30 p.m., except for the week-end and holidays. One of the basic principles, applied at the auctions is "delivery against payment".

The first closed auction on the distribution of state securities was conducted on the fifth of February, 1994. 240 closed auctions have taken place in the period 05.02.1994 - 01.01.2000. Today auctions are organized on a regular basis, generally on Tuesdays. Additional distributions of state securities take place practically every day.

State securities to the amount of 90 billion roubles are in circulation as of 01.02.2001 (which makes 75 million USA dollars). The Ministry of Finance never fails to conduct the redemption of bonds.

The following terms of state securities circulation in the Republic of Belarus have been established: from1 month to 1 year for state short-term bonds, from 1 to 3 years for state long-term coupon bonds.

Yield on state securities in the Republic of Belarus is based on the refinancing rate, set by the National bank (75% a year).

Non-residents can purchase state securities at primary distributions (auctions, additional distributions) and at the secondary market (exchange trade). Two special types of accounts are used by non-residents:

·                    Type "T" accounts (regulations on conducting currency transactions in the Republic of Belarus as of 1.08.1996, #768) can be opened only by non-resident representative offices and subsidiaries, registered in the Republic of Belarus. Type "T" accounts can not be used for buying foreign currency at the home currency market of the Republic of Belarus.

·                    Type "C" accounts are based on the national monetary unit of the Republic of Belarus. These accounts are usually established by legal bodies, non-residents of the Republic of Belarus, for investing funds into state or National bank securities.

 

In order to conduct transactions with type "C" accounts banks need to obtain special authorization from the National bank of the Republic of Belarus (Priorbank, Commerce and Industry Bank, and Technobank are eligible to deal with type "C" transactions).

At the home currency market of the Republic of Belarus non-residents can purchase foreign currency from type "C" accounts only after it has been invested into state or National bank securities.

In compliance with article 10 of the law of the Republic of Belarus "Taxes on the income and profit of enterprises, associations and organizations", the income of foreign legal bodies, based on state securities, is not subject to taxation.

In compliance with the Decree of the President of the Republic of Belarus as of 23.12.1999, #43 on "Taxation of Income in Certain Fields of Activity", financial intermediaries and insurance companies pay 30% rate taxes if selling bonds at the secondary market at prices higher than the current ones.

Additional information on state securities of the Republic of Belarus is offered at our site of the Rater information agency (). Here one can view the results of auctions and additional distributions of state securities. The site (http://bicex.minsk.by) of the "Belarusian Currency and Stock Exchange" offers results of auctions, conducted at the secondary market of state securities in the Republic of Belarus.

You can also contact us at : (8-017) 226 82 97, 223 98 90.

Primary investors, participants of closed auctions on the distribution of state securities of the Republic of Belarus.

1.                    Belagroprombank

2.                    Belarusian Industrial Bank

3.                    Belgasprombank

4.                    Joint-stock company "Priorbank"

5.                    Zolotoi Taler bank

6.                    Belarusian Narodnyi Bank

7.                    Belarusbank

8.                    Technobank

9.                    Belpromstroibank

10.                Belbusinessbank

11.                Belvnesheconombank

12.                Minsk Transit Bank

13.                RRB-Bank

14.                Absolutbank

15.                The Mosbusinessbank branch in Minsk

16.                Slavneftbank

17.                Belarusian Bank of Development

18.                Belarusian Exchange Bank

19.                MinskComplexBank

20.                JAM-Bank

21.                Commercy and Industry Bank

 

Participants of Securities Auctions. State Securities Section.

1.                  The National Bank of the Republic of Belarus

2.                  Belagropromstroibank

3.                  Belvnesheconombank

4.                  Belpromstroibank

5.                  Belbusinessbank

6.                  Belarusian Exchange Bank

7.                  Belarusian People's Bank

8.                  Belarusian Bank of Development

9.                  Zolotoi Taler

10.             Minskcomplexbank

11.             Minsk Transit Bank

12.             Belarusian Industrial Bank

13.             Slavneftebank

14.             RRB-Bank

15.             Priorbank

16.             Mosbusinessbank branch in Minsk

17.             Belgasprombank

18.             Belarusbank

19.             Absolutbank

20.             Jam-bank

21.             Infobank

22.             Belkoopbank

23.             Technobank

24.             Commerce and Industry Bank

25.             Mezhtorgbank

26.             Belbaltia

27.             Poisk

28.             Moscow-Minsk foreign bank

29.             Invalue

30.             Belintrast-F

31.             Investpromservice

32.             Intercapital

33.             Belmezhkominvest

34.             KNPM

35.             Belintrust-M

 

 

Authorized Depositaries of State Securities of the Republic of Belarus

1.                  Priorbank

2.                  MinskComplexbank

3.                  Belvnesheconombank

4.                  Belarusbank

5.                  Belgasprombank

6.                  Belpromstroibank

7.                  Belarusian Exchange Bank

8.                  Belagroprombank

9.                  Belbusinessbank

10.             Absolutbank

11.             Minsk Transit Bank

12.             Zolotoi Taler bank

13.             Slavneftebank

14.             RRB-Bank

15.             Mosbusinessbank branch in Minsk

16.             JAM-Bank

17.             Belarusian Bank of Development

18.             Technobank

19.             Foreign bank "Moscow-Minsk"