OREANDA-NEWS. State subsidies for Belarus' regional agriservice companies (Belagroservice and Belmeliovodkhoz) to purchase Belarusian-made machinery at the expense of bank credits will be sustained for one year in accordance with President Lukashenko's ordinance of March 10, 2014.

Belagroservice and Belmeliovodkhoz will act as lease providers to distribute the machinery purchased between end users. The ordinance says that lease provides shall charge commissions of 2% at most of the selling prices of the machinery, which will subsequently be leased out.

The documents says that lease providers will receive partial compensations for their bank credit expenditures at half of the central bank's refinancing rate (maximum 12% per annum) for ruble credits. For hard-currency credits, interest payments will be compensated at 4% per annum at most.

As previously reported, Belarus earmarked Br4.66tn (USD 475.5 million) for purchasing farming machinery and equipment in 2013-2014.

The list of equipment includes production and harvesting equipment for grain crops, potatoes, beet roots, grass fodder, vegetables, flax, land improvement machinery, equipment for livestock farms.

It is expected that all the equipment and machinery will be acquired on leasing contracts.