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Government bonds are issued by the Ministry of Finance of the Republic of Belarus

Purposes of bond issue:

  • attracting temporary free funds of individuals and legal entities, both residents and non-residents of the Republic of Belarus, to finance the national budget deficit;
  • redeeming previous government debt securities of the Republic of Belarus.

Bonds issue volume, their redemption and service charges are determined by the Ministry of Finance while drafting the state budget for the next fiscal year, and cleared up during its execution in accordance with Belarusian legislation.

Bondholders may be both legal entities and individuals either residents or non-residents of the Republic of Belarus.

Government securities are:

  • government bonds denominated in BYR (short-term (up to one year maturity) and long-term (over one year maturity), discount/interest yield)
  • government bonds denominated in foreign currency (short-term (up to one year maturity) and long-term (over one year maturity), discount/interest yield)

Bonds are issued by separate issues in an uncertified form.

Government short-term and long-term bonds may be issued with a discount or interest income in Belarusian rubles or in foreign currency.

Volume of an issue is determined by the Ministry of Finance before the auction, or before a direct sale though the BCSE (determined issue volume), or after the auction, or before the date of direct sale is expired (open volume of the issue).

The Ministry of Finance takes a decision for every issue of bonds. It contains information about bonds (type, date of public offering and date(s) of redemption, maturity, placement amount at the auction or during direct sale at the BCSE with the determined placement amount, par value of bonds and their terms of placement, interest income payment (interest bonds), early repayment, redemption and exchange of bonds).

The details of a global note certifying the information about the bond issue are set by the Ministry of Finance in accordance with Belarusian legislation.

Placement of bonds is carried out in the following ways:

  • Sale at the auction (Held by the Ministry of Finance through the BCSE, or by the National Bank;
  • Sale by the Ministry of Finance to legal entities in accordance with the bilateral agreements under the conditions declared by this Ministry;
  • Direct sale by the Ministry of Finance through the BCSE;
  • Transfer or sale to banks for their subsequent disposition. Relations between banks and the Ministry of Finance are regulated by contracts.

Individuals may place bonds according to the procedure established by the Ministry of Finance.

Accounting of all placed bonds is made on the deposit accounts in the depositories defined by the Republican Unitary Enterprise “Republican Central Securities Depository” in coordination with the Ministry of Finance (authorized depositories).

The Republican Unitary Enterprise “Republican Central Securities Depository” acts as a central depository and controls bonds in circulation.

The Ministry of Finance settles bonds redemption and(or) interest payment with authorized depositories on the maturity day and(or) interest day upon government securities denominated in BYR, and before two working days upon government securities denominated in foreign currency.

Authorized depositories carry out settlements with holders of government bonds denominated in BYR within one working day after receiving funds from the Ministry of Finance, and on the maturity and (or) interest day upon government securities denominated in foreign currency.

Violating the deadlines of bonds redemption or revenue payments will result in 0.1 percent penalty for each day of delay for the guilty party.

The Ministry of Finance is entitled to:

  • Do early repayments of bonds. 
  • Redeem bonds before maturity.
  • Exchange bonds for bonds of the other bond issues, upon the consent of the owner during their circulation

The National Bank and bondholders are entitled to purchase and sale bonds on the securities market in accordance with the legislation of the Republic of Belarus.

Peculiarities of government bonds circulation in the secondary market

Type of securities

Carrying out transactions

Circulation limits

Government securities denominated in BYR

Сonly on organized market (on-exchange market)

Bonds cannot circulate within the working day preceding the maturity and (or) interest date(s)

Government securities denominated in foreign currency

As on  organized market (on-exchange market), and unorganized market (further professional participant’s  registration required)

Bonds cannot circulate within three working days preceding the maturity and (or) interest date(s)

 

Professional consulting:

Customers Service Division

mail address: 220013, Minsk,  48а, Surganova str., room 212,

tel. +375 (17) 306 34 70,

e-mail: Kadushko@bcse.by