Belarusian banks will be required to create funds from their profits, with the money to be used for lending to investment projects. The requirement is set out in Resolution No. 369 of the Board of the National Bank dated Dec. 20, which was published on the National Legal Internet Portal on Tuesday and comes into force on Jan. 1.
Under the resolution, banks and non-bank credit and financial organisations must establish funds, with the exception of reserve funds, from profits remaining at their disposal after the payment of taxes, fees (duties) and other mandatory payments to budgets, including state targeted budget funds, as well as state extra-budgetary funds.
The funds’ resources are to be used in the following proportions:
- at least 60% for lending to investment projects and investing in the economy through other forms and methods, including by increasing banks’ authorised capital;
- no more than 40% for increasing the reserve fund and/or for other purposes determined by the bank’s general meeting of shareholders.
The resolution also contains a provision classified as “for official use only”.
