How Development Bank helps small and medium-sized businesses

The Development Bank has adopted the so-called wholesale lending scheme: the resources are provided to commercial banks, which have a developed network of lending to small and medium-sized businesses, and the Development Bank allocates loans at the expense of funds. 

Alexander Egorov, Chairman of the board of the Development Bank of Belarus: 

“There are two products: the first is a specialized product "Export". The rate on it is 14%, the term of lending is up to 5 years. Loans to residents of Belarus, small and medium enterprises have been issued on it for about 100 million since the start of the year. The second product is a specialized loan introduced after the sanctions. This is a product aimed at import substitution and exports. The rate of 7.5%, which is below the refinancing rate. The term is up to 10 years, the amount is up to 5 million. About 20 million has already been issued. And from the conversation with the banks, we can see that the number of applications is many times greater. We expect more use of these resources in the next month or a month and a half.”

Also, a subsidiary organization, the Agency for Foreign Economic Activity, has been set up with the Development Bank. One of its tasks is to simplify the administrative procedures for export and import. According to the chairman of the board of the bank, it is very important for small and medium-sized businesses, which bear large costs. "And within the framework of this agency, we plan to create such a special platform, a single window of foreign economic activity, where customers will be able, firstly, to receive electronic administrative procedures; secondly, they will be able to receive some additional services, which now they receive in different places. For example, it could be financing, logistics, insurance, some kind of transport services and so on, "- said Alexander Egorov.

Alexander Egorov, Chairman of the Development Bank of Belarus: 

We should launch the first pilot stage by the end of this year. Then we will gradually scale it up. Speaking in general, we are guided by the experience of China, the experience of Korea, where more than 750 different administrative and non-administrative procedures are laid out in a single window, and the client receives them electronically.