OREANDA-NEWS. A group of Belarusian banks including Belarusbank, Belagroprombank, Belinvestbank and BPS-Sberbank has been challenged to issue credits to the tune of Br4.75 trillion (USD 478.831 million) to facilitate advance payments and final settlement of contracts in the framework of public procurement of new crops and livestock products in 2014.

President Lukashenko issued an ordinance to this effect on April 10, 2014.

To facilitate crop procurement, settlement accounts for crop transportation services and pay compensations for crop production, the banks are expected to issue in loans as much as Br4.6 trillion (USD 463.71 million). The money shall go to sugar refineries, fodder factories, bread producers and flax factories.

Belagroprombank is expected to provide Br1.644 trillion (USD 165.759 million), Belarusbank - Br2.77 trillion (USD 279.226 million), Belinvestbank - Br165.75 billion (USD 16.709 million), BPS-Sberbank - Br20 billion (USD 2.016 million).

The credits shall be provided at 50% of the effective refinancing rate of the National Bank, with a profit margin of not more than 3 percentage points for ruble credits; not more than 4% per annum for FX credits.

The aforementioned banks are supposed to issue at least 30% of the total amount of credit resources by June 1, 2014.

In turn, the state shall compensate borrowers for interest payments. Likewise, the banks that provide cheap loans for procurement of crops will have their losses compensated in the amount of 50% of the refinancing rate of the National Bank on ruble loans, and 4% on FX loans.

The banks will have the repayment of the cheap loans secured by the government and local administrations.