RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of January 10, 2017 No. 11

About some questions of forming by banks, "Development Bank of the Republic of Belarus" open joint stock company and non-bank credit and financial organizations of special reserves on covering of possible losses on the assets and transactions which are not reflected in balance

Based on Article part four 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, subitem 3.6 of Item 3 of Article 132 and subitem 3.1 of Item 3 of article 133 of the Tax Code of the Republic of Belarus

1. Bring in subitem 14-1.1 of Item 14-1 of the Instruction on procedure for forming and use by banks, "Development Bank of the Republic of Belarus" open joint stock company and non-bank credit and financial organizations of special reserves on covering of possible losses on the assets and transactions which are not reflected in balance, the Republic of Belarus approved by the resolution of Board of National Bank of September 28, 2006 No. 138 (The national register of legal acts of the Republic of Belarus, 2006, No. 184, 8/15214; 2011, No. 123, 8/24309), following amendments and change:

the fifth parts one to add the paragraph with the words "taking into account the features established by parts two and third this subitem";

after part one to add the subitem with parts of the following content:

"Assessment of sufficiency of receipts in foreign currency for timely and complete debt repayment in foreign currency is carried out by bank based on calculation of the entering and proceeding cash flows of the debtor at least once in six months taking into account the following features:

foreign currency cash, the debt matching currency, and (or) in freely convertible currency, except for the foreign currency cash which is receivable the debtor under the agreements of the credit, loan, transactions connected with placement of debt securities of own issue and the repo transactions planned to the conclusion, but which are not concluded at the time of assessment by bank of sufficiency of receipts of the debtor in foreign currency for timely and complete debt repayment in foreign currency and also on the bills of exchange with payment deferral planned to issue (sale), but which are not issued (not sold) at the time of carrying out bank of the specified assessment is taken into consideration of the entering flow;

money in any foreign currency, except for the foreign currency cash which is payable the debtor under the agreements of the credit, loan, transactions connected with placement of debt securities of own issue and the repo transactions planned to the conclusion, but which are not concluded at the time of assessment by bank of sufficiency of receipts of the debtor in foreign currency for timely and complete debt repayment in foreign currency and also on the bills of exchange with payment deferral issued (sold) debtor after carrying out by bank of the specified assessment is taken into consideration of outgoing flow.

Receipts in foreign currency are recognized sufficient for timely and complete debt repayment foreign currency if the entering cash flow of the debtor in foreign currency reduced by outgoing cash flow of the debtor in foreign currency is equal or exceeds remaining balance of its debt to bank in foreign currency in the corresponding repayment periods of such debt.";

second and third to consider parts respectively parts four and heel;

in part five to replace the word "second" with the word of "fourth".

2. Determine that:

2.1. the special reserve on covering of possible losses on assets in foreign currency which are subject to classification by the II risk group only based on factor of insufficiency of receipts in foreign currency (except for the assets which are earlier classified by groups with higher risk level) is created by banks, "Development Bank of the Republic of Belarus" open joint stock company and the non-bank credit and financial organizations in the following procedure:

since July 1, 2017 - in the amount of at least 1 percent from the total amount of debt on the corresponding assets and (or) the total amount of the corresponding contingent obligations;

since January 1, 2018 - in the amount of at least 1,5 of percent from the total amount of debt on the corresponding assets and (or) the total amount of the corresponding contingent obligations;

since July 1, 2018 - in the amount of at least 2 percent from the total amount of debt on the corresponding assets and (or) the total amount of the corresponding contingent obligations;

since January 1, 2019 - in the amount of at least 2,5 of percent from the total amount of debt on the corresponding assets and (or) the total amount of the corresponding contingent obligations;

since July 1, 2019 - in the amount of at least 3 percent from the total amount of debt on the corresponding assets and (or) the total amount of the corresponding contingent obligations;

since January 1, 2020 - in the amount of at least 4 percent from the total amount of debt on the corresponding assets and (or) the total amount of the corresponding contingent obligations;

since July 1, 2020 - in the amount of, provided by the Instruction about procedure for forming and use by banks, "Development Bank of the Republic of Belarus" open joint stock company and non-bank credit and financial organizations of special reserves on covering of possible losses on the assets and transactions which are not reflected in balance, the Republic of Belarus approved by the resolution of Board of National Bank of September 28, 2006 No. 138 (The national register of legal acts of the Republic of Belarus, 2006, No. 184, 8/15214);

2.2. during the period of forming of special reserve provided by subitem 2.1 of this Item in the amount of less than 5 percent from the total amount of debt on the corresponding assets banks, "Development Bank of the Republic of Belarus" open joint stock company and the non-bank credit and financial organizations specify information on execution of subitem 2.1 of this Item in the cover sheet to the reporting represented according to the Instruction about procedure for creation and representation by banks, "Development Bank of the Republic of Belarus" open joint stock company and non-bank credit and financial organizations of the prudential reporting to National Bank of the Republic of Belarus approved by the resolution of Board of National Bank of the Republic of Belarus of October 31, 2006 No. 172 covering of the possible losses on assets in foreign currency classified by the II risk group (The national register of legal acts of the Republic of Belarus, 2006, No. 201, 8/15355).

4. This resolution becomes effective since July 1, 2017.

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