Update: Belagroprombank JSC

Our key assumptions for 2023-2024 include: Loan book growth of about 10% yearly based on our understanding that new lending opportunities are limited. Cost-of-risk to remain elevated at around 3% considering quite low provisions coverage and potential pressure on asset quality. Dividends of BYN90 million yearly. The proportion of dividends for state-owned organizations is set by state decree. The stable outlook reflects our view that Belagroprombank will continue honoring its financial obligations over the next 12 months, absent any capital control measures or liquidity stress. We could lower the ratings on Belagroprombank if the NBRB imposed capital controls or if we observed significant deposit outflows that undermined the bank's ability to meet its financial obligations. The imposition of new international

... from timely government support, but future support is uncertain. Belagroprombank is the second-largest domestic bank in Belarus by assets, and the largest lender to the strategically important agricultural sector with 15% market share by total assets and 14% by deposits according to national accounting standards, as of Oct. 1, 2023. The government of Belarus owns 99.6% of Belagroprombank, and the bank's strategy is closely aligned with the government's social and economic development plan. The bank is involved in various government lending programs representing around 21% of the total loan book as of June 30, 2023. Some of these loans are provided at subsidized interest rates and require capital support from the government to prevent a depletion of the bank's capital base. Although the Belarusian government has provided timely capital and liquidity support to the bank in the past, we believe the continuance of this support is uncertain...

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