Фото: Reform.by
The Belarusian Council of Ministers has extended for another year the procedure allowing the Development Bank to fulfil its eurobond obligations.
The procedure was approved by Resolution No. 381 of May 28, 2024. It was initially set to remain in force until May 2, 2025, but was later extended for one year, and now, by Resolution No. 199 of April 24, its validity has been prolonged until May 2, 2027.
In early May 2024, the Development Bank reported that it was unable to transfer funds to its payment agent, Citibank, N.A., London Branch, due to sanctions.
At that time, the government authorised the Development Bank to repurchase eurobonds at 30% of their nominal value plus accrued and unpaid interest as of the buyback date. A condition for such repurchase is that bondholders transfer the eurobonds to the bank’s account.
The bank was also granted the right to fulfil its eurobond obligations in Belarusian rubles. Such payments may be received by bondholders from countries not included in the list of “unfriendly” states and who purchased the securities before the resolution entered into force. Interest income is paid together with the redemption of the eurobonds. Payments must be made at the National Bank exchange rate on the day of transfer.
The resolution applies to eurobond issues with ISIN codes XS1904731129 and US25161EAA91.