The Government of Belarus was allowed to issue Eurobonds in 2010-2011 up to two billion dollars with circulation period of not less than five years and placing them outside the country. This decision was made by Alexander Lukashenko's decree № 245 "On the issue of government bonds of the Republic of Belarus" dated May 13.
The document is adopted in order to attract foreign investment into Belarusian economy, its full text can be found on the website of the National Center of Legal Information. According to the decree, the Council of Ministers of Belarus is given the right to «approve each bonds issue prospectus in the limits of issues’ amount (two billion dollars), as well as contracts relating to the issuance, placement, circulation and redemption of these bonds».
The document also grants the right of the government «to fix (if necessary) in contracts and other documents relating to the issuance of bonds in accordance with the second paragraph of this clause, their placement, circulation and redemption, the refusal of the Republic of Belarus of immunity in disputes related to the issuance, placement, circulation and redemption of the bonds».
The Council of Ministers was also given a right to «determine state institutions as well as officials and grant them the authority to legally significant acts, including the signing of documents necessary for the issuance, distribution, circulation and redemption».
The decree provides that income «from Belarus’ state long-term bonds (which are government promissory notes, forming an external public debt) and income received from providing services related to the issuance, placement, circulation and redemption of bonds, as well as accounting the rights, they are not subject to taxes on income of foreign organizations not operating in the Republic of Belarus through the permanent establishment».
«The payment of commissions, bonuses and implementation of other costs associated with the issuance, placement, circulation and redemption of bonds, mentioned in the paragraph two of this clause, are made from the funds provided in the national budget to service external public debt», the document reads.
