1. Trade and structured finance in the Republic of Belarus.
Since 1922
Trade and structured finance
in the Republic of Belarus.
Challenges and opportunities
Viktar Perepelitsa
Executive Director
Minsk
16 March 2017 1

2. NAS Belarusbank. Highlights USD mln (in equivalent) 2012 2013 2014
2015
2016
Assets
15 111
16 853
16 665
14 425
14 223
Equity
2 421
2 386
2 054
1 879
1 839
Profit
140
147 54 78
Customer deposits
9 215
10 550
10 521
8 602
8 739
Loans to customers
9 854
11 819
12 009
8 534
8 027
Change
+24
mln USD
Comments to results 2016 (NAS)
Loans to customers ,3 mln USD. In line with the economy.
Negative GDP for 2016, strict monetary policy of the National Bank of the Republic of Belarus, credit policy of Belarusbank influenced to volume of loans to customers.
Customer deposit mln USD.
Beneficial influence to the liquidity of the bank
Change
+137
mln USD 2

3. Belarusbank. Highlights
Belarusbank ratios:
Refinancing rate, %
ROA - 0,25 %
ROE - 2,21%
CAR – 18,3%
Change -10%
Jan, 2017
Belarusbank NPL ratio
(corporate & retail)
Apr, 2016
Aug, 2016
Mar, 2017
Jan, 2015
May, 2016
Dynamic of deposits rate (Euro), %
Level of NPL coverage,%
Comments:
Belarusbank NPL ratio is 1,9%.
Belarusbank wrote-off big share of NPL at the expense of profit at the end of NPL has decreased, NPL coverage has increased. Belarusbank keeps NPL coverage ratio on high level for mitigation of risks.
Decreasing of refinancing rate, rates for deposits leads to the decreasing cost of internal funding of Belarusbank. Also cost of funding from foreign institutions is going down. 3

4. Minority stake selling – 25%
NEW STRATEGY
Since 1922
Minority stake selling – 25%
KPMG became the winner of tender held by Belarusbank in order to choose Financial Advisor
The main objective is to attract strategic investor with new technology, business model, strategy approach and innovations
Increase of capital is of secondary importance
Focus on commercialization of business
Development of the most profitable business spheres
Bank’s foreign presence transformation
Restructuring of non-core assets
Decrease of lending under government programs
Optimization of branch network
Personnel optimization and labor productivity growth
Enhancement of corporate governance
Risk management improvement
Internal control system development
Independent directors introduction
Implementation of Corporate Ethics Code 4

5. trade finance & tied loans
Foreign funding
trade finance & tied loans
Belarusbank’s Share in Trade Balance
of the Republic of Belarus
Trade finance USD mln in eq.
Letters of Credit issued, USD mln in eq.
Comments:
Decreasing of trade finance volume does not express reduction of Belarusbank share in the maintenance of foreign trade turnover.
Belarusbank share in the maintenance of foreign trade turnover of Belarus is stable around 20%. 5

6. trade finance & tied loans
Foreign funding
trade finance & tied loans
External Financing in Belarusbank’s Funding
Comments:
Share of foreign funding in Belarusbank funding base is around 11% (as of ), 50% of which is ECA backed loans.
Trend for increasing concluded ECA agreements despite decreasing trade turnover
“Tied” financing
loan agreements concluded, USD mln in eq.
1899*
* Note: including USD 1400 mln Facility of China Development Bank 6

7. Breakdown of trade finance Geography of Lenders
balance dynamics %
Russian banks share in the lenders portfolio is decreasing
German and Netherlands banks share in the lenders portfolio is growing. 7

8. ECA business. Geography. 1999-2017
Breakdown by ECAs and Eximbanks,
loan agreements concluded
Breakdown by Lenders, balance dynamics
!NB
Stable significant share of Euler-Hermes
Growth of Sinosure share in ECA breakdown
Stable share of SACE, EGAP, KUKE, SERV 8

9. Government of the Republic of Belarus
Significant deals
2015
2016
2016
USD 300 m
Facility
Lender
Borrower
Guarantor
Government of the Republic of Belarus
Lender
Borrower
Borrower
Government of the Republic of Belarus
Lenders
ECA
Guarantor
ECA
EUR 106 m
ECA-covered loan
USD m
Term Facility
Chinese Contractor
Customer
Exporter
Importer
2017
Lender
!NB
Borrower
Government of the Republic of Belarus
New instrument ‘General purpose creditt line for medium term’ was implemented with CDB
Guarantor
USD 100 m
General purpose Facility 9

10. Petrochemicals Construction Energy
Prospects of cooperation
Petrochemicals
Construction
Energy
Belarusbank is interested in:
complex financing offer for the contract (incl. ECA loans)
bilateral loans 10

11. Opportunities Challenges Challenges & Opportunities
for international business
Opportunities
Challenges
Stimulation of economic activity by implementation of new instruments of financing foreign trade contracts
Foreign trade-turnover decreasing
Reduction of domestic demand for foreign trade contracts financing
Credit lines for trade-related deals
General purpose credit line
ECA support of short and medium term financing 11 11

12. Key issues
Belarusbank runs transparent policy towards choosing foreign financing bank for financing the deal.
We highly appreciate all our partners.
The lowest price is your “ticket’ to enter the deal.
Belarusbank has reach knowledge and experience to implement new pproducts together with you. 12 12