OREANDA-NEWS. Belarus has designated seven leasing companies (BPS Leasing, ASB Leasing, Vneshneekonomicheskaya Leasing Company, Promavtostroileasing, Stroiinvestleasing, Agroleasing, Promagroleasing) which will have their interest payments on bank credits partially compensated by the government.

The compensations will cover interest payments on bank credits drawn by leasing companies to facilitate the procurement of new farming machinery and automobiles in the framework of the government's 2014-2020 farm upgrade programme.

As previously reported with reference to President Lukashenko's ordinance #450, lease providers will receive partial compensations for their bank credit expenditures during a five-year period 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.