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Belarus introduces new terms for leasing Belarus-made vehicles

ABR Staff Writer Published 14 March 2014

The appeal of the deals to sell Belarus-made vehicles via leasing companies has been increased in Belarus, BelTA learned from Sergei Shimanovich, Director of the Association of Lessors of Belarus, as he commented on the relevant presidential decree.

Belarus president decree No.116 of 10 March 2014 was published by the national legal information website law.by on 12 March. The document amends decree No.450 of 1 October 2013, which was designed to increase sales of Belarus-made vehicles, in particular, MAZ products, via leasing. Now the central state budget will reimburse part of the interest payments to the tune of 50% of the National Bank's refinancing rate but no more than 12% per annum for Belarusian ruble loans and no more than 4% per annum for foreign currency loans.

The preferences are now extended onto vehicles to be sold in 2015 in addition to those to be sold in 2013-2014. The reward for lessors within the framework of the leasing contracts signed as part of the decree has been limited to 2% per annum instead of 2% of the sale price for the vehicle.

Sergei Shimanovich explained that the novelty is supposed to increase marginal earnings for lessors as part of the deals. It will encourage leasing companies to engage in selling Belarusian vehicles by allowing the companies to operate in the black. Operating in the black was impossible on old terms. Yet a mechanism is needed to precisely calculate the margin because the current definition allows double interpretation, said the Director of the Association of Lessors of Belarus. Thus, leasing companies are waiting for the government to clarify the new terms.

Belarus president decree No.116 comes into force as of the official publication date. The decree will not be applicable to the contracts signed before the date.

Source: Company Press Release