New Eurobonds will be issued to repay previous borrowings
As of June 19th, 2017, Belarus is planning to conduct a road show of Eurobonds nominated in USD in the US and Europe. Citi, Raiffeisen Bank International AG and the Development Bank of Belarus will be the organisers, the total issue volume could be up to USD 1 billion. Bonds maturity period would be between 5 and 10 years, taking into account the absence of problems with the settlement of external liabilities. The demand is expected to exceed the issue, the interest rate could be 5% to 6% per annum depending on the maturity, and some bonds could be bought out by organizations and trust funds located in Belarus. Most funds raised from the bond issue would be spent to repay Belarus’ Eurobonds with 7-year maturity period, which expires in January 2018. The remaining funds would be transferred to international reserves and used to repay other external liabilities.
According to Decree No. 221 of June 23rd, 2017, deadlines for the completion of foreign trade operations have been extended from 90 to 180 days for exports and from 60 to 90 days for imports. Delayed payments entailed a fine up to 2% of the transaction cost for each day of the delay, but could not exceed the total cost of the transaction. Most companies, when working with new counterparties, require a deferred payment for a period of three to six months. Due to the new regulation, violations are likely to reduce in number, so as the fines. Trade enterprises are likely to expand the assortment list due to the supply of new products in small lots, and the assortment list of exported Belarusian goods could expand, too. The new terms for completing foreign trade transactions would enable medium and small companies on the foreign trade market, exporters and importers are likely to grow in number and the geography of export-import operations could expand.