Trends in the development of documentary operations

On the Structure of Foreign Trade Payments

Foreign trade activity serves as a driver of the economy, and Belarus is actively expanding trade with a wide range of countries.

Compared to the pre-sanctions period, the roles of the yuan and the US dollar/euro in settlements have reversed. Previously holding a minor share, the yuan has now become the second most-used currency after the Russian ruble. This trend is also evident in documentary operations, which are closely tied to payment capabilities.

The overarching macrotrend in recent years has been a shift in documentary business fr om the European Union toward China and the Russian Federation. As a bank, we are witnessing a 180-degree pivot to the East, and we see how the yuan has been gaining strength in recent years.

There is significant potential in developing the China-focused trade corridor, including the expansion of documentary operations. Our bank handles the majority of the country’s settlements with China, supported in part by the presence of our representative office in China, which has enabled the opening of accounts there.

On the Popular Forms of Documentary Instruments

Approximately one-third of all letters of credit issued by Belarusbank are export letters of credit. Currently, settlements in the form of export letters of credit are carried out with residents of Russia, Pakistan, and China. This instrument is also in demand for domestic settlements.

What trends do we observe in working with our clients? First of all, it is multicurrency settlements, meaning the ability to receive proceeds in a currency different fr om the currency of the letter of credit.

Another trend is the submission of electronic documents for letters of credit, which allows for shorter payment times and eliminates courier service costs. This trend is typical for letters of credit with the Russian Federation.

Recently, we have observed cases of receiving coverage for export letters of credit, wh ere our exporters not only choose the letter of credit form of settlement to protect themselves when working with new regions and counterparties, but also seek an additional guarantee in the form of cash coverage fr om the issuing bank. We have experience with such transactions.

One of the services provided by Belarusbank is the confirmation of deferred payment letters of credit and the provision of discounting upon presentation of documents by the exporter.

The advantage of this instrument is that it allows our exporter clients to offer deferred payment to the buyer while simultaneously receiving proceeds under the letter of credit. This enables the client to shorten the cash conversion cycle and reduce accounts receivable.

Documentary collection also remains a popular instrument.

Its advantages are:

•  it is the simplest instrument among documentary operations;

•  its costs are lower than those of guarantees and letters of credit;

•  it requires a minimal set of documents and no collateral, due to the absence of credit risk for the bank.

•  there is an opportunity to enter new foreign markets—those wh ere collection is a standard and widely used method of settlement.

Belarusbank is a leader in the documentary operations market for this form of payment. Over the past year, the number of collections for our clients has increased. We see this as a promising direction and expect continued growth in both the volume and number of collection transactions—both for exports and imports. This instrument is particularly in demand when working with China.

One of the recent trends in the area of guarantees has been their issuance for the participation of Belarusian enterprises in public (municipal) procurement in the Russian Federation. Belarusbank was among the first to take part in a pilot project for issuing such guarantees and is ready to expand the use of this instrument. This will enable the bank’s clients to grow their business and attract new partners.

Thanks to recent innovations in Belarusian legislation, new instruments have emerged: microguarantees and microletters of credit, which our bank is actively offering to clients.

Microguarantees allow clients to obtain any type of guarantee provided by the bank (payment guarantees, advance repayment, performance guarantees, tender or bid guarantees, credit security, and other active obligations) through a simplified procedure and in a shorter timeframe.

A microletter of credit refers to an uncovered letter of credit opened by the bank using a simplified procedure, provided that the total amount of the issuing bank’s obligations on all active letters of credit opened on behalf of a single client does not exceed the lim it set by the National Bank of the Republic of Belarus.

On Accounts and Payment Volumes

As of today, Belarusbank maintains an extensive network of correspondent accounts. In 2024, new accounts were opened in countries such as India, Armenia, Azerbaijan, Poland, China, and others. At the beginning of 2025, correspondent accounts were opened with two banks in Uzbekistan. Active efforts are underway to expand the correspondent network in the People's Republic of China.

The volume of foreign economic payments processed by Belarusbank is steadily growing. A positive trend is observed in both exports and imports.

The growth in payment volumes is primarily driven by the expansion and promotion of settlements in national currencies. The bank has the capacity to operate with all EAEU currencies. Additionally, transactions can be carried out in Azerbaijani manats, Tajik somoni, and Uzbek sums.

Expanding foreign trade operations and receiving export revenue while minimizing risks remain top priorities for Belarusbank, alongside offering competitive service conditions to clients.

The goal of financial institutions in the coming years is to elevate dialogue with partners and offer clients both time-tested standard solutions and personalized products tailored to the current environment.

We demonstrate maximum engagement in working with our clients, support their business initiatives, consider their needs, offer clear terms, and provide a strong foundation for enhancing the competitiveness of their enterprises.