Belarus: Presidential Decree amending regulation of leasing in Belarus enters into force on 1 September 2014.
New Presidential Decree No. 99 dated 25.02.2014 empowers the Belarus National Bank to regulate and control leasing. Under the new rules, leasing companies must be entered by the National Bank in a Register of leasing companies and receive a certificate accordingly.
Before applying for enrolment on the Register the share capital of a leasing company must be paid in full in the amount of 50 000 EUR.
Leasing companies operating before the effective date of the Decree are entered into the Register regardless of the amount of their share capital, but on condition that the share capital will be increased to 25 000 EUR by 1 July 2015, and to 50 000 EUR by 1 July 2016.
The following organisations are entitled to conduct leasing activity without being filed in the register:
- legal entities and individual entrepreneurs that have concluded no more than 3 leasing agreements totalling no more than 10 000 basic units (approx. 110 000 EUR) a year;
- foreign companies that conduct leasing in Belarus through a permanent representative office;
- legal entities that are empowered to conclude leasing contracts under a decision of the President;
- banks and non-banking credit and financial companies.
In order to be filed in the Register a leasing company must first be registered with the National Bank.
Under the Decree, leasing companies (including foreign companies acting through a representative office) must file reports about their leasing activities with the National Bank for the purposes of due control.
Leasing companies must disclose information about their leasing activity and a financial statement by publication as well as by announcement at their offices and on their official web pages on the Internet.
The Decree also defines the essence of leasing and subleasing contracts and the powers of the National Bank in the leasing industry. The new Decree enters into force on 1 September 2014.
Source: National legal Internet portal of the Republic of Belarus (NLIP) 27.02.2014 1/14857