On fulfillment of obligations on government securities placed on foreign financial markets

In accordance with the numerous requests from owners of government securities placed on the external financial markets (hereinafter referred to as Eurobonds) about the actual non-receipt or receipt of incomplete payments on Eurobonds made by the Ministry of Finance in February 2022 (obligations were fully fulfilled by the Ministry of Finance by transfer of funds in favor of the paying agent “Citibank N.A. London Branch”), the Ministry of Finance informs.

The Ministry made all efforts to identify the reasons for the actual non-transfer of funds in full to the final owners of Eurobonds. The paying agent (“Citibank N.A. London Branch”) notified that funds were transferred in favor of clearing systems, however, additional explanations for the further distribution of funds were not provided. No official clarifications have been received from international clearing systems.

The situation is also complicated by the sanctions imposed by the European Union against the National Bank of the Republic of Belarus, which restrict operations for making payments in foreign currency.

Taking into account these circumstances, in order to strictly implementation of the obligations assumed by the Republic of Belarus on Eurobonds a joint resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 413/15 “On Amending the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 212/10 dated April 6, 2022” was adopted on June 28, 2022. This decision involves the transfer by the Ministry of Finance due on Eurobonds payments at the expense of funds in foreign currency of amounts in Belarusian rubles to accounts specially opened in JSC “ASB Belarusbank”.

Access to these funds is provided for the paying agent “Citibank N.A. London Branch” determined by certain issuance documentation.

At the same time, the resolution gives the Ministry of Finance the right to fulfill obligations to Eurobond holders with their consent on an alternative basis, including replacing debt obligations on Eurobonds with debt obligations on government securities placed on the domestic financial market, through early redemption of Eurobonds or otherwise. The procedure for carrying out these operations will be determined by the Council of Ministers of the Republic of Belarus and the National Bank.

Additionally, we would like to inform that the payments on Eurobonds of the Republic of Belarus dated June 29, 2022 (Belarus-2027) in the total amount of USD 22.9 million in equivalent have executed in accordance with the new procedure.