Project finance

The following schemes may be used to finance long-term investment projects implemented by enterprises and organizations:

1. Raising long-term credit facilities from overseas

JSC Belagroprombank has a possibility of raising long-term (3-7 years) credit facilities to finance imports from Poland, Germany, Hungary, Russian federation, Czech Republic, Italy, Slovakia, China, Austria, Bulgaria, Slovenia, Holland, Denmark and other countries.

To qualify for a long-term foreign credit line, the insurance provided by the national export credit insurance agency (KUKE, BAEZ, Euler-Hermes, SACE etc.) is required. Insurance coverage may be paid by the importer, and included into the loan payments or interest rate payments.

2. Forfaiting

Forfaiting involves the purchase of receivables from the exporter by the non-resident financial company.
Investment projects are implemented through a forfaiting scheme under the following conditions:

• A discount paid to the financial company that purchased receivables shall be included into the cost of the contract;
• The grace period on the letter of credit is up to 5 years;
• The fee charged by Belagroprombank for services related to an uncovered letter of credit shall not exceed the average 3% margin recommended by the National Bank of the Republic of Belarus.