RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of September 28, 2006 No. 138

About approval of the Instruction about procedure for forming and use of special reserves on covering of possible losses on the assets and transactions which are not reflected in balance

Based on Article part six paragraph two 34, the Board of National Bank of the Republic of Belarus DECIDES: parts one of article 39 of the Bank code of the Republic of Belarus, Items 8 and 11 of article 176 of the Tax Code of the Republic of Belarus

1. Approve the Instruction about procedure for forming and use of special reserves on covering of possible losses on the assets and transactions which are not reflected in balance (further – the Instruction) it (is applied).

2. In case of classification of the assets and liabilities which are not reflected in balance according to the Instruction approved by this resolution to carry banks of the Russian Federation to banks of the group "C" if they have the following ratings established by the below-specified rating agencies and published in their editions, and also posted on their official sites on the global computer Internet:

Moody rating agency "s Investors Service – long-term rating from Vaa1 to B3;

Fitch Ratings rating agency – long-term rating from BBB+ to In –;

S&P Global Ratings rating agency – long-term rating from BBB+ to In –.

2-1. In case of classification by bank, "Development Bank of the Republic of Belarus" open joint stock company and non-bank credit and financial organization (further, unless otherwise specified, - bank) the assets and liabilities which are not reflected in balance according to the Instruction approved by this resolution the insurance contract of export risks with support of the state signed with the Belarusian republican unitary enterprise of export-import insurance "Beleksimgarant" (further - BRUPEIS "Beleksimgarant"), can be equated to the insurance policy of insurance company - the legal entity of group "A" at observance of the following conditions:

the insurance sum covers requirements of bank to the debtor on repayment of the main amount of debt in the amount of at least 90 percent;

availability at bank of data as of the last reporting date, BRUPEIS "Beleksimgarant", sufficient for reliable assessment of capability, to fulfill the obligations to bank, including about the size of equity, deposits of BRUPEIS "Beleksimgarant" to authorized funds of other legal entities, assumed insurance bonds and the corresponding insurance reserves on insurance of export risks with support of the state, debt of BRUPEIS "Beleksimgarant" on budget advances by terms of its repayment; about the size of the means provided in the republican budget for ensuring obligation fulfillment of BRUPEIS "Beleksimgarant" for insurance contracts of export risks with support of the state;

own sources of BRUPEIS "Beleksimgarant" are sufficient for payment of insurance indemnities for all to the signed insurance contracts (if payment of insurance indemnity for insurance contracts of export risks with support of the state requires attraction of budgetary funds, - sufficiency of the appropriate means provided on these purposes in the republican budget).

2-2. No. 350 is excluded according to the Resolution of Board of National Bank of the Republic of Belarus of 12.10.2023

3. To banks till December 31, 2006 to make changes to local regulatory legal acts for the purpose of establishment of signs of financial instability of the debtor, the partner on contingent obligations, and also additional criteria of reference urgent, prolonged and overdue debt on the assets subject to credit risk, and contingent obligations to the IV risk group according to requirements of the Instruction approved by this resolution and to submit them for approval to National Bank of the Republic of Belarus.

4. No. 203 is excluded according to the Resolution of Board of National Bank of the Republic of Belarus of 31.05.2022

5. Recognize invalid:

the resolution of Board of National Bank of the Republic of Belarus of September 29, 2004 No. 148 "About approval of the Instruction about procedure for forming and use of special reserve on covering of possible losses on the assets of bank and non-bank credit and financial organization subject to credit risk" (The national register of legal acts of the Republic of Belarus, 2004, No. 172, 8/11588);

the resolution of Board of National Bank of the Republic of Belarus of November 18, 2004 No. 172 "About approval of the Instruction about procedure for forming and use by banks and non-bank credit and financial organizations of reserve under impairment of securities" (The national register of legal acts of the Republic of Belarus, 2004, No. 191, 8/11725);

the resolution of Board of National Bank of the Republic of Belarus of August 31, 2005 No. 127 "About modification and amendments in the Instruction about procedure for forming and use of special reserve on covering of possible losses on the assets of bank and non-bank credit and financial organization subject to credit risk" (The national register of legal acts of the Republic of Belarus, 2005, No. 142, 8/13096);

the resolution of Board of National Bank of the Republic of Belarus of September 14, 2005 No. 130 "About modification of the Instruction about procedure for forming and use of special reserve on covering of possible losses on the assets of bank and non-bank credit and financial organization subject to credit risk" (The national register of legal acts of the Republic of Belarus, 2005, No. 156, 8/13180);

the resolution of Board of National Bank of the Republic of Belarus of November 22, 2005 No. 163 "About introduction of amendments and changes in the Instruction about procedure for forming and use of special reserve on covering of possible losses on the assets of bank and non-bank credit and financial organization subject to credit risk" (The national register of legal acts of the Republic of Belarus, 2005, No. 192, 8/13513);

the resolution of Board of National Bank of the Republic of Belarus of November 22, 2005 No. 164 "About modification and amendments in the Instruction about procedure for forming and use by banks and non-bank credit and financial organizations of reserve under impairment of securities" (The national register of legal acts of the Republic of Belarus, 2005, No. 192, 8/13514);

the resolution of Board of National Bank of the Republic of Belarus of January 31, 2006 No. 15 "About entering of amendments and changes into the Instruction about procedure for forming and use of special reserve on covering of possible losses on the assets of bank and non-bank credit and financial organization subject to credit risk" (The national register of legal acts of the Republic of Belarus, 2006, No. 37, 8/13960);

the resolution of Board of National Bank of the Republic of Belarus of March 21, 2006 No. 43 "About entering of amendments and changes into the Instruction about procedure for forming and use by banks and non-bank credit and financial organizations of reserve under impairment of securities" (The national register of legal acts of the Republic of Belarus, 2006, No. 54, 8/14205).

6. This resolution becomes effective since January 1, 2007, except for Items 3 and 4, which become effective from the date of official publication of this resolution.

Approved by the Resolution of Board of National Bank of the Republic of Belarus of September 28, 2006 No. 138

The instruction about procedure for forming and use of special reserves on covering of possible losses on the assets and transactions which are not reflected in balance

Chapter 1. General provisions

1. This Instruction is developed for the purpose of ensuring financial reliability of banks, timely and complete obligation fulfillment before the investors and other creditors, implementation of proper risk management arising in their activities, maintenance of the normative capital of bank at the level sufficient for compensation of risks, forming of special reserves on covering of losses.

2. This Instruction determines procedure for forming and use of the following special reserves by banks on covering of possible losses (further, unless otherwise specified, - special reserves):

special reserve on covering of possible losses on the assets subject to credit risk, including reserve on covering of possible losses on portfolios of the uniform credits;

special reserve on covering of possible losses on the transactions which are not reflected in balance (further, unless otherwise specified, - contingent obligations).

3. Requirements of this Instruction do not extend on:

obligations on provision of money in the form of loans, the loans issued by bank (except for commercial loans);

the redeemed securities of own issue;

government securities of the Republic of Belarus, securities of National Bank, securities of the governments, Central (national) Banks of the countries of the group "A", banks of the group "A", international banks of development of the A0 group, international banks of development of group "A", international financial institutions (except as specified when securities are referred to category of the encumbered assets);

the means placed in National Bank;

shares;

the securities carried at fair value;

the contingent obligations connected with activities for ensuring own needs.

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