In Belarus, from October 1, 2023, the issue of housing bonds will be carried out according to the new rules approved by Decree No. 160 of June 1, 2023.
Until this date, the issuance of housing bonds is suspended, except for cases of registration of housing bond issues under investment agreements between the investor (investors) and the Republic of Belarus, concluded before November 7, 2021 and providing for the possibility of using housing bonds, and / or by decision of Lukashenka.
From October 1, 2023, housing bonds are issued under the following conditions:
– submission by the legal entity-issuer of an audit report based on financial statements for the previous calendar year, confirming the accuracy of calculating the value of net assets of both the issuer and the guarantor, if the guarantee ensures the fulfillment of obligations under housing bonds;
– transfer of funds raised from the placement of housing bonds to special accounts opened for each housing construction object, the features of the functioning of which are determined by this decree.
– conducting a mandatory examination of the reliability of an independent assessment of the value of securities, movable and immovable property pledged in order to ensure the fulfillment of the issuer’s obligations under housing bonds. The results of the examination are reflected in the prospectus for the issue of housing bonds, and an independent assessment and examination must be provided by the issuer at least once every two years;
– conducting an annual audit of the intended use during the reporting year of funds raised for the construction of housing construction facilities by issuing housing bonds;
– conducting an annual audit of the annual accounting and financial statements, as well as the reliability of the calculation of the value of net assets.
– disclosure of audit reports in accordance with the procedure established by the legislation on securities.
According to the document, the issuer of housing obligations “is entitled to open only one special account in Belarusian rubles for each housing construction project.”
Funds received on special accounts are used by issuers only for the intended purpose for the construction of a housing construction facility with direction to finance the work, costs included in the consolidated cost estimate for the construction of a housing construction facility, and costs not included in this summary estimate calculation, but attributable to construction cost.
“Foreclosure on executive and other documents, which are the basis for debiting funds from accounts in an indisputable manner, on funds placed on special accounts is not carried out, the said funds are not seized, operations on special accounts are not suspended”, – also stated in the decree.
“Own funds directed by the issuer from its current (settlement) bank account for the construction of a housing construction object before or during the receipt of funds from the placement of housing bonds are compensated from a special account in an amount equal to the cost of the developer’s actually paid costs for the construction of a housing construction object”, – also stated in the document.