EXPORT FINANCING

About the Development Bank Founded in 2011 in line with recommendations from IMF and WB 100% state owned Member of the Development Banks Council of Eurasian Economic Union Since 2016 - the only bank in the Republic of Belarus performing export financing (investment group of goods) The only Belarusian bank with: A representative office in London SMEs support program approved by the World Bank «B- /B» credit ratings assigned by S&P / Fitch with «Stable» outlook Отдел экспортного финансирования

Assets / Equity/ Profit About the Development Bank Assets / Equity/ Profit (2016 )                                 Since 2012 the Development Bank has been one of TOP-5 banks of the Republic of Belarus

Mission and Goals of the Development Bank Development of the mechanism of government programs financing and realization of socially important investment projects GOALS Financing of investment projects included into government programs Acquisition of assets formed by other banks when realizing government programs and events Export crediting Financial support to SMEs Financing of investment projects on account of Chinese credit facility Family funds management Отдел экспортного финансирования

NON-RESIDENT (buyer of Belarusian goods) Main Schemes of Export Crediting Export credit Export credit Export credit NON-RESIDENT BANK NON-RESIDENT (buyer of Belarusian goods) RESIDENT (a leasing company) Tied credit Leasing equipment Отдел экспортного финансирования

Terms of Export Credits Granting Credit Purpose Payment for goods(included into a list) , works, services realized by residents of the Republic of Belarus, or preliminary payment for goods(included into a list) , works, services to be produced and (or) realized by residents of the Republic of Belarus Minimal credit amount USD 1 000 000 in equivalent Maximum credit amount 85% of export contract value Currency USD, EUR, RUB Maturity Up to 5 years (up to 10 years in some cases) Interest rate USD, EUR - CIRR rate (http://www.oecd.org/tad/exportcredits/cirrs.pdf) RUB – 2/3 of key rate of the Central Bank of Russian Federation Collateral Insurance coverage from Eximgarant of Belarus (оbligatory). In some cases additional collateral may be needed: government guarantee, guarantee from local authorities, suretyship by third parties, bank guarantee etc. Insurance premium To be paid before credit withdrawal, in % of credit amount . Insurance premium amount depends on the category of country risk, borrower’s financial standing, availability of additional collateral. Insurance to be paid: as a lump-sum amount, once per 6 months, once per each quarter.

Documents of Financial Standing A List of Documents to be Presented by a Non-Resident for the Financing to be Considered Documents of Title Articles of association, certificate of state registration, owner’s resolution on director’s appointment, IDs of the importer’s director and chief accountant, opinion from a foreign legal company Documents of Financial Standing Balance sheets, breakdown of some accounts, references from banks on accounts turnover and lists, information on settlements between exporter and importer, their reconciliation act Documents on the Project to be Funded Аpplication, contracts with exporters and goods buyers, feasibility study

NON-RESIDENT IMPORTER Scheme of Export Credits Granting to Non-Residents Payment from credit funds EXPORTER NON-RESIDENT IMPORTER Goods Tied credit Export credit ЭКСПОРТЕР NON-RESIDENT BANK Interbank credit Reimbursement Insurance

NON-RESIDENT IMPORTER Scheme of Export Credits Granting with JSC Promagroleasing MANUFACTURER Equipment Payment from credit funds Leasing out NON-RESIDENT IMPORTER Or realization Export credit Reimbursement Insurance

NON-RESIDENT IMPORTER (affiliated company of a Belarusian exporter) Example of Export Credit Granted to a Russian Resident for Payment on Delivery PRODUCTION CYCLE REALIZATION CYCLE 1. 15% prepayment NON-RESIDENT IMPORTER (affiliated company of a Belarusian exporter) EXPORTER 2. Goods shipment 4. Payment of 85% from credit funds 5. Goods realization 3. Export credit 6. Proceeds inflow 7. Credit repayment END BUYERS

NON-RESIDENT IMPORTER (affiliated company of a Belarusian exporter) Example of Export Credit Granted to a Russian Resident for Prepayment (80% prepaid/ 20% paid on delivery) PRODUCTION CYCLE REALIZATION CYCLE 1. 15% prepayment (own participation) NON-RESIDENT IMPORTER (affiliated company of a Belarusian exporter) 3. 65% prepayment (from credit funds) EXPORTER 5. Goods shipment 7. 20% payment from credit funds 2. Export credit for prepayment (65%) 4. Goods production 8. Goods realization 6. Export credit for payment on delivery (20%) 9. Proceeds inflow 10. Credit repayment END BUYERS

International Cooperation Development Bank actively cooperates with international financial institutions (IFI) and banks Partner banks for export financing IFI and development banks More than 50 partner banks from EU, Asia, Africa and CIS Close cooperation with IFIs and development institutions Июнь 2016

Exported goods financed Performance in the Area of Export Crediting Russia Kazakhstan Моngolia Cuba Exported goods financed The total volume of Belarusian export funded with participation of the Development Bank during the period of its operating made more than USD 550 million in equivalent  

Promising projects to be financed Supply of Gomselmash agricultural machinery Supply of lifts and lift equipment Supply of Belagromash machinery Automotive vehicles supply Supply of BELAZ trucks Supply of integrated stimulating centers Supply of Bobruyskagromash agricultural machinery Supply of AMKODOR machinery Supply of MAZ automobiles and buses Supply of Horizont equipment The total volume of potential new export credits makes about BYN 700 million in equivalent  

Contacts JSc Development Bank of the Republic of Belarus 35 Masherova Avenue, Minsk 220002, Republic of Belarus SWIFT BRRBBY2X UNP 191683861 Fax: +375 17 292 70 16 Gennadiy Khomich Head of Export Financing Unit Tel: +375 17 239 11 43 E-mail: homich.g@brrb.by Andrey Volosyuk   Chief Specialist Теl.    +375 17 309 65 62   E-mail: volosyuk.av@brrb.by Pavel Kuchuk  Теl.    +375 17 309 68 57   E-mail: kuchuk.p@brrb.by Alexandr Savitskiy   Теl.    +375 17 309 68 33  E-mail: savitskiy.a@brrb.by Vyacheslav Chirak   Теl.    +375 17 309 68 32   E-mail: chirak.v@brrb.by Июнь 2016