Bonds will be even more reliable

On June 14, 2024, Edict of the President of the Republic of Belarus was signed to amend the procedure of registration and issue of bonds (the Edict will enter into force in three months).

For the purpose of calculating the amount of issue of bonds secured by a suretyship, existing pledges over the surety’s property, including property rights reflected on its balance sheet, will be considered (subtracted).

The cases where a legal entity cannot act as a surety, as well as the grounds for refusal to register a bond issue (amendments/additions to the prospectus), have been clarified. Those are the presence of the issuer’s or surety’s high or critical risks of bankruptcy, debts under writs of execution or other documents that are the basis for writing off funds in an indisputable manner, as well as procedures for economic insolvency or bankruptcy in relation to the issuer or the surety.

Changes in regulation have been made to reflect the law enforcement practice and are aimed at protecting the investors.