
Debt Recovery: Legal Strategies
Comprehensive guide to debt collection procedures under Belarusian law, featuring enforcement mechanisms and creditor rights protection.
Security of collection under the loan agreement
If a non-resident has issued a loan to a resident of Belarus, and the resident fails to fulfill repayment obligations, the following debt collection methods are available:
Pre-trial settlement agreement. The non-resident may propose a pre-trial debt settlement, which could include repayment negotiations, an installment plan, or other settlement options.
Judicial recovery. If pre-trial measures fail, the non-resident can file a claim with a Belarusian court to recover the debt under the loan agreement. The court may order repayment and impose a penalty for late payment.
International mechanisms. If an international investment protection agreement or other treaties exist, the non-resident may seek debt recovery and rights protection through international authorities.
In each case, it is important to consider the loan agreement’s terms, applicable international agreements, and consult with a lawyer or international law specialist to choose the most effective debt recovery 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 interest on the loan amount. If the borrower fails to repay the loan, in addition to the agreed interest, interest can be charged on the loan amount (in Belarusian rubles) for the use of other people’s funds. This interest is collected at the refinancing rate of the National Bank of Belarus on the repayment date, or on the date of the court decision if collected through court. The loan agreement, including one in foreign currency, may also set a different interest rate for the use of other people’s funds.

Features of out-of-court debt collection under the 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 a loan agreement with a Belarusian company, a mandatory pre-trial dispute settlement procedure applies. Before filing documents with the court to recover the debt, a written claim — a proposal for voluntary repayment — must be sent to the company. For a loan agreement with a private individual — a resident of Belarus — a pre-trial settlement procedure is not mandatory. Such an agreement can be notarized, and in that case, debt collection can be pursued by applying to a notary for an executive inscription instead of going to court. Otherwise, the lender may directly file a court claim. If the agreement with an individual does not specify a repayment deadline, a claim demanding repayment must first be sent, and only after 30 days from the date the borrower receives it can the lender apply to the court.

Features of recovery under the loan agreement in court
A claim to recover the loan debt can be filed within three years from the date the borrower was obliged to repay. The claim is submitted to the court at the borrower’s place of residence and must include the loan agreement, a debt calculation, and proof of payment of the state fee.
If the loan agreement requires repayment in foreign currency, the claim may request repayment in that currency. If repayment is to be made in Belarusian rubles equivalent to a foreign currency amount, the court will collect the debt at the National Bank of Belarus exchange rate on the date of the court’s decision, unless another rate is specified in the agreement. If the court orders repayment but the borrower fails to pay, the lender can file a new claim to recover interest for the use of the loan (if the agreement provides for interest). Interest will accrue until the court’s decision on repayment is enforced.

How to Properly Draft a Receipt (Loan Acknowledgment)
A properly drafted receipt is crucial when lending money or items in Belarus. While legislation doesn’t specify strict formatting requirements, following certain guidelines ensures your receipt will serve as valid evidence in court.
The receipt should be handwritten by the borrower and include the borrower’s full name and passport details, specific acknowledgment of receiving money or items, the exact amount and currency, a clear obligation to repay, the repayment deadline, plus signature and date. Computer-printed receipts with signatures are legally valid but make verifying authorship difficult.
For maximum legal protection, draft the receipt in the presence of witnesses and include their contact information. The receipt should contain no substantive errors and be written legibly. The lender keeps the receipt until the debt is repaid, then returns it to the borrower.

How to Notarize a Loan Agreement
The Instructions on Notarial Procedures in Belarus includes notarized loan agreements as an official service. A notarized loan agreement carries greater legal weight than a simple receipt, making it advisable when there are concerns about borrower reliability.
The current notary fee for drafting a loan agreement is 135 Belarusian rubles. Both the lender and borrower must be present for the notarization process and must bring their passports. You’ll need to inform the notary about the loan amount or specific characteristics of items being lent. The actual transfer of funds can occur either before visiting the notary or during the contract signing.
Both parties sign the agreement in the notary’s presence. The document receives an official registry number and bears the notary’s certification mark, signature, and seal. You can schedule an appointment at any notary office in Belarus regardless of your registered address.

How to Draft a Loan Agreement Without a Notary
For smaller loan amounts, you can create a valid loan agreement independently without notary certification.
Your agreement should clearly outline all conditions of the money or property loan. Specifically include the borrower’s obligation to return the loan by a mutually agreed deadline. It’s recommended to specify whether interest is charged and at what rate. The contract must contain complete identification details and contact information for both parties (passport information and phone numbers for individuals, or company name and legal address for businesses).
When drafting your own loan agreement, be sure to specify the currency in which funds are being transferred. The loan amount should be written using both numerals and words to prevent any potential disputes or misunderstandings.

How to Recover Debt Under a Notarized Loan Agreement
A notarized loan agreement carries greater legal weight than both a simple receipt and a standard written loan contract. Belarusian law establishes that debts from notarized transactions can be recovered through a notary’s writ of execution. To initiate this process, you must visit a notary and present the original loan agreement document. The notary’s writ of execution provides a convenient and expedited method for debt collection in an undisputed manner. For this reason, when lending significant sums of money, it is highly recommended to have your loan agreement notarized to ensure stronger legal protection and simplified recovery options.
How to Recover Debt Under a Written Loan Agreement
A written loan agreement carries greater legal weight than a simple receipt but less than a notarized loan agreement. Funds can be recovered through court proceedings via a summary procedure if the debtor does not dispute the debt. This requires submitting an application and the original agreement to the court. A pre-trial recovery process is also available. It is recommended to formally notify the debtor in writing of their obligation to repay, stating that legal action will follow if payment is not made. This step often prompts repayment without court involvement.
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FAQ
Debt collection in Belarus can be pursued in the same currency specified in the loan agreement or receipt. Both Belarusian rubles and foreign currencies are legally acceptable for loan documentation, though enforcement will follow applicable currency regulations.
To recover debt with a receipt, first attempt direct communication with the debtor. If unsuccessful, send a formal demand letter. Should these measures fail, you can file a claim with the courts, presenting the receipt as primary evidence of the debt obligation.
Without a receipt, debt recovery becomes more challenging but remains possible. Alternative evidence such as bank transfers, witness testimonies, electronic communications acknowledging the debt, and other documentation establishing the loan can be used in court proceedings.
File an application with the district court where the debtor resides. Your application should include the loan documentation, your contact information, the debtor’s details, the amount owed, and any evidence supporting your claim. Court fees are calculated based on the claim amount.
Yes, you may collect penalties and interest if they were explicitly stated in the original loan agreement. Without such provisions, you can still claim statutory interest for the unauthorized use of funds according to Belarusian Civil Code provisions.
Yes, legal costs can be recovered from the debtor if you win your case. The court will determine a reasonable amount based on the complexity of the case and standard legal fees. Be sure to document all expenses related to debt recovery.
A properly drafted receipt should be handwritten by the borrower and include: full names and passport details of both parties, the exact amount and currency, repayment deadline, any interest terms, and the date of creation. Having witnesses present during signing provides additional verification.
Contact us
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LawyerLegal assistance is provided by advocate Anton Grinewich, Specialized Legal Bar No. 2 in Minsk.
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AddressOffice: 1 Krasnaya str., Minsk, Republic of Belarus Postal address: 1 Krasnaya str., Minsk, Republic of Belarus
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