Foreign companies and individuals sometimes issue cash loans to Belarusian companies and individuals. Companies and individuals who have borrowed money (borrowers) for various reasons may delay the repayment of the loan. In such a situation, the non-resident who issued the loan (the lender) can recover the loan amount. The recovery requires the help of an experienced lawyer.
Security of collection under the loan agreement
If a non-resident has issued a loan in favor of a resident of Belarus, and this resident does not fulfill his obligations to repay the loan, the following debt collection methods are possible:
- Conclusion of a pre-trial settlement agreement. A non-resident may apply to a resident with a proposal to settle the debt in a pre-trial manner. This may include debt repayment negotiations, a pre-trial installment agreement, or other forms of settlement.
- Judicial recovery. If the pre-trial measures did not lead to repayment of the debt, the non-resident may apply to the court of Belarus with a claim for debt collection under the loan agreement. A court decision may oblige a resident of Belarus to repay the loan and pay a penalty for late payment.
- International mechanisms. If an international investment protection agreement or other international agreements have been concluded, a non-resident may apply to international authorities to protect his rights and collect debt.
In each specific case, it is necessary to take into account the specifics of the loan agreement, the existence of international agreements, as well as consult with a lawyer or an international law specialist to develop the most effective debt collection strategy.
Features of the loan agreement in Belarus
It is believed that the loan agreement is concluded not from the moment it is signed by the parties, but after the transfer of money. We recommend specifying the loan repayment period in the contract. This may be a specific date.
The form of the loan agreement
The loan agreement between the companies is concluded in writing. A written agreement is needed between individuals when the loan amount is more than 10 basic units, which is 370 Belarusian rubles.
Interest on the loan agreement that can be collected
The loan agreement may be interest-free or provide for the payment of interest for the use of the loan amount.
If the borrower does not repay the loan, then in addition to these percentages, interest can be calculated on the amount of the loan issued to the resident in Belarusian rubles for using other people’s funds. Such interest is collected in the amount of the refinancing rate of the National Bank of Belarus on the day of repayment of the loan or in court – on the day of the court’s decision on collection.
In the loan agreement, including a foreign currency one, it is possible to determine a different amount of interest for the use of other people’s funds.
In what currency is it possible to collect
A non-resident can issue a loan to a resident of Belarus in Belarusian rubles or in a foreign currency. The settlement currency can be defined in the contract. This may be the Belarusian ruble or another currency in which the borrower returns the borrowed amount to the lender. Accordingly, the debt is collected in the currency in which the loan is returned according to the agreement.
Features of out-of-court debt collection under the loan agreement
A non-resident lender may consider terminating the loan agreement with the help of a set-off or innovation. When offsetting, mutual obligations with the debtor are repaid, if there are such obligations. In case of innovation, the borrower’s obligation to repay the loan is replaced by another obligation, for example, the supply of goods, the provision of services, the performance of work for the lender.
Features of pre-trial settlement of disputes under the loan agreement
According to the loan agreement concluded with the Belarusian company, there is a mandatory pre-trial dispute settlement procedure. This means that before sending documents to the court to recover the amount of the debt, you need to submit a written claim to the Belarusian company — a proposal for voluntary payment of the debt.
According to the loan agreement concluded with a private person — a resident of Belarus, it is not necessary to comply with the mandatory pre-trial dispute settlement procedure. At the conclusion of such an agreement, you can certify it with a notary. In this case, for debt collection, instead of going to court, you can apply to a notary for the execution of an executive inscription. Otherwise, the lender can immediately apply to the court to recover the debt.
If there is no term for repayment of the loan amount in the contract with an individual, then before applying to the court for debt collection, you need to send a claim demanding repayment of the loan amount, and only 30 days after receiving the claim by the borrower to go to court.
Features of recovery under the loan agreement in court
It is possible to apply to the court for the recovery of the amount of debt under the loan agreement within three years after the day when the borrower had to repay the loan amount. The statement of claim is filed in court at the place of residence of the borrower. Documents must be attached to the application, in particular, the loan agreement, the calculation of the amount owed and the payment of the state fee.
When the loan agreement says that the loan must be repaid in a foreign currency, the statement of claim may require repayment of the amount owed in that currency. When, under a loan agreement, it is necessary to repay the amount of debt in Belarusian rubles equivalent to the amount in a foreign currency, the court collects the amount of debt in Belarusian rubles at the exchange rate of this currency, which was established by the National Bank of Belarus on the day of the decision on collection, if the parties did not determine a different rate in the loan agreement.
If the court has decided to recover the loan amount and despite this the borrower does not repay the loan, the lender has the right to file a new claim to the court for collecting interest for using the loan (when the loan provides for the payment of interest). In this case, interest will be collected until the day of execution of the court’s decision to recover the loan amount from the borrower.
How we can be useful in collecting money under a loan agreement
Our lawyers and attorneys are experienced specialists in the field of debt collection under a loan agreement and speak English. We can:
- Advise you on the issues of collecting money under a loan agreement from Belarusian companies and individuals;
- Prepare documents for pre-trial settlement of the dispute;
- Send a claim to the debtor on your behalf;
- Send the documents for collection to a notary or to the court;
- Represent your interests in court when resolving a dispute.
Contact us
If you have any questions about collecting money under the loan agreement, we will be happy to help you! Our many years of experience in debt collection will help you in resolving any situations and disputes.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
