Belarus’ National Bank entrusted with functions of regulator of non-banking factoring

On November 11th, President of Belarus Aleksandr Lukashenko signed Decree No. 416 On the Activities of Financing under the Assignment of Monetary Claims (Factoring), sb.by reports with reference to the Belarusian leader’s press service

The document was adopted as a follow-up to changes in civil and banking legislation, which gave the right to all commercial organisations in Belarus to carry out financing under the assignment of monetary claims, thus taking factoring beyond the scope of exclusively banking operations.

The decree envisages the assignment of the functions of the regulator of non-banking factoring to the National Bank and the establishment of mandatory requirements for factoring organisations, such as their inclusion in the relevant register of the National Bank, requirements for the minimum size of the statutory fund, business reputation of heads, founders, financial records, disclosure of information, etc.

The norms of the decree are aimed at forming an integrated system of regulation of factoring activities in Belarus and the development of affordable financing tools for the real sector of the economy.