On September 8, 2023, the Edict of the President of the Republic of Belarus No. 282 "On Project Completion" came into effect in the Republic of Belarus. This Edict aims to address issues related to the termination of obligations to the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, and the Nordic Investment Bank.
Firstly, the Edict defines the possibility of changing the source of funding, allowing the previous order of executing contracts for the supply of goods (works or services) to remain as originally agreed for implementing activities under credit agreements. This rule applies to 12 credit agreements.
Secondly, such contracts can be terminated, granting clients the right to independently finish the work.
Thirdly, any remaining funds transferred by the International Bank for Reconstruction and Development and held in special accounts by clients must be transferred to the republican budget by December 13, 2023.
In addition, the Edict introduces amendments to other acts of the President regarding investment projects such as:
- Belarus: Environmental Infrastructure Project
- Improving the Efficiency and Quality of Municipal Services
- Reconstruction of the Minsk Sewage Treatment Plant
- Sustainable Energy Use Expansion
- Modernization of Higher Education in the Republic of Belarus, among others.
These amendments affect three aspects. Firstly, the project owners have the option to fulfill their obligations under contracts using their resources and funds from the state budget.
Secondly, when importing equipment, materials, and components purchased for the investment project, the declarant (carrier) is exempt from customs duties and VAT. Rules have been established for granting this exemption, based on reports from regional authorities, which are submitted to customs and tax authorities accordingly.
Thirdly, the Ministry of Finance of Belarus is responsible for repaying loans from the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, and the Northern Investment Bank. Regional authorities are tasked with notifying tax and customs authorities about the completion of the investment project.
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