Belarus has passed a new law amending its legislation in respect of letters of credit (L/Cs) and bank guarantees.

The law, which amends and expands the Banking Code of the Republic of Belarus, came into force on 22 January 2013.

Unifying legislation

Several amendments to the Banking Code involve the application of L/Cs and bank guarantees and are aimed at unifying the Belarusian legislation with international banking practice and rules.

Notably, conditions specified by a bank guarantee now have to strictly observe the principle of the irrevocability of the guarantee and the notion of the transferable guarantee.

Electronic currency

Other aspects of the new law include granting the right to issue electronic currency to Belarusian banks and non-banking credit and finance organisations.

The revised Banking Code also specifies new settlement documents to be used by banks for transactions in Belarusian roubles and foreign currency.

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