Sovcombank and the Government of Belarus sign an agreement on subsidising loans for purchasing machinery from Belarus

Sovcombank's customers will have an opportunity to buy agricultural and industrial machinery from Belarus at a subsidised lower interest rate. The agreement helps to considerably reduce the cost of debt for Russian customers.

Under the agreement, Sovcombank grants loans for industrial products, with the interest rate on the loans partly subsidised by the Ministry of Finance of the Republic of Belarus. The compensatory part will be two thirds of the Bank of Russia's key rate as at the loan date. This way customers will only pay the remaining part of the interest rate, and the cost of debt will be substantially lower.

The loan for machinery and vehicles is available to legal entities and sole proprietors. Financing is provided as a loan or credit line for up to five years, and the loan amount covers up to 90% of the cost of products. Principal is repaid in equal monthly instalments. The Belarus-based MTBank acts as the agent bank under the agreement.

Terms of providing and subsidising soft loans to Russian purchasers of Belarussian products are set forth by Decree of the President of the Republic of Belarus No. 466 of 24 September 2009.

Publication date: 8 April 2020