OREANDA-NEWS  On 26 November was announced, that the ban on down payments for imports of goods and services will help minimize the negative effects of capital outflows, the National Bank of Belarus (NBB) said in a statement.

The NBB’s resolution #165 regulating settlements for imports came into effect on November 16, 2008.

The central bank passed the resolution in coordination with the Council of Ministers and the State Control Committee in order to prevent the negative consequences of capital outflow [Belarusian companies make down payments for imports while allowing foreign buyers respites to pay for Belarusian products].

Resolution #165 bans payments to non-residents from bank accounts opened in Belarus under foreign trade contracts envisaging importation of goods and services before the non-residents discharges its obligations to the Belarusian company.

Down payments will only be possible if the Council of Ministers provides a relevant petition.

The resolution does not apply to settlements made after foreign suppliers discharge their obligations to Belarusian importers.

Under the circumstances, the central bank recommends importers:

to analyze the feasibility of imports and opportunities for further sale of products on the domestic and foreign markets before importing goods and services;

to upgrade earlier contract terms to conditions stipulated in resolution #165;

to resort to letters of credit, bank guarantees and insure business risks if non-residents require payment guarantees;

to reach a loan agreement with a non-resident bank to transfer funds directly to the supplier instead of paying from the importer’s account with a Belarusian bank.