Commentary to Decree No. 396 of 6 August 2014
On 6 August President of the Republic of Belarus Aleksandr Lukashenko signed Decree No. 396 “Concerning additions and amendments to the decrees of the President of the Republic of Belarus”.
In order to enhance control over the targeted use of subsidized loans provided by OAO Belarusbank and OAO Belagroprombank for the construction (renovation) or purchase of housing, the document has introduced additions and amendments to Decree No. 346 “Concerning measures to promote housing construction in rural areas” of 2 September 1996, Decree No. 13 “Concerning the provision of state support for the construction (renovation) or purchase of housing” of 6 January 2012 and Decree No. 263 “Concerning shared construction of facilities in the Republic of Belarus” of 6 June 2013.
OAO Belarusbank and OAO Belagroprombank will transfer subsidized loans for the construction (renovation) of housing to special accounts meant for the targeted use only. These funds will be used to construct (renovate) residential housing and finance expenses included in the consolidated cost estimate.
Indisputable recovery of funds from such accounts will be limited. The funds placed on special accounts will be exempt from taxes, duties and other mandatory payments.
Taking into account that separate accounts will be opened for every house, there is a need to clarify the notion ‘construction object’. Before the decree was signed, several residential houses could serve as one construction object. The fact complicated control over the targeted use of funds.
In line with the decree, a developer can reduce the cost of a shared construction project for all participants by means of reducing profit. The decision shall be formalized in the additional agreement.
The decree stipulates that if a participant of a shared construction project receives a subsidized loan, the price of the shared construction project must be recalculated by the developer. The contract price will not be pegged to the foreign currency exchange rate.