Basically, these are documents that are within the competence of the Ministry of Finance," he explained.
Alexander Rakov stressed that the adoption of the decree is a significant event for Belarus. "Securitization is an important trend in the world over the past decades, which allows business entities - primarily banks-to receive funding on more favorable terms, with lower costs and in large volumes, then to direct the funds again for lending to the economy," he said. In turn, the financing of new projects will contribute to the growth of the economy and employment.
As it was reported, the new instrument for raising financing provides for the conversion of various types of monetary obligations (formed both in the banking sector and in the real sector of the economy) into securities. The positive effect of the new financing scheme should be the emergence of bonds of special financial institutions, which will stimulate the development of the national securities market.
The new financing scheme is based on the assignment of rights (claims) on loans, loans and other receivables, followed by the issuance of bonds, which in the world was called "securitization". Banks and other legal entities (enterprises, leasing companies) will be able to participate in it. The objects of transactions are loans and borrowings, payments under lease agreements, other types of receivables. As a result of the assignment of rights (claims), organizations will receive real money instead of debt. These funds will be immediately used for modernization, implementation of investment projects, that is, will be directed to the development of the economy.