Debt collection in Belarus

In Belarus, the process of collecting debts from commercial organizations involves several key mechanisms: order-based (simplified), notarial, and claim-based (judicial) procedures. Each method has its own specific regulations and advantages depending on the circumstances.

Main methods of debt recovery

Order-based procedure (simplified)

This method is applicable when the debt is uncontested. It allows for a quicker resolution, as the court issues an order to recover the debt without a full hearing. The debtor has 10 days to contest the order, after which it becomes enforceable. This method is efficient for straightforward cases and minimizes costs for the creditor.

Notarial enforcement

In cases where the debt is confirmed by written agreements and supporting documentation, a notary can issue an executive endorsement, which serves as a direct order for recovery. This process typically takes a few days, making it one of the fastest methods. However, it requires that all paperwork is accurate and properly drafted, as any discrepancies can result in delays.

Claim-based judicial proceedings

This method is used when the debt is disputed or the amount is unclear. In this scenario, a full trial in the economic court is necessary. The creditor must prepare a comprehensive claim, submit evidence, and participate in the court hearings. While more time-consuming, this method is indispensable for resolving complex disputes.

The importance of pre-trial negotiations

Given the current sanctions and economic environment, pre-trial settlement negotiations play an increasingly significant role in resolving debt-related disputes. With the Belarusian government implementing a moratorium on the enforcement of court orders regarding debt collection from Belarusian companies in favor of businesses from the EU, the British Commonwealth, and North America, relying solely on judicial means has become less effective.

Pre-trial negotiations offer a more flexible and immediate alternative. They allow for open dialogue between the creditor and the debtor, facilitating the discovery of mutually acceptable solutions to settle debts despite political and economic restrictions. This method not only helps avoid delays but also opens opportunities to find creative ways to transfer payments or restructure debts under the existing sanctions regime.

Impact of sanctions

The presidential decree imposing a moratorium on the enforcement of debt recovery from Belarusian companies, particularly in cases involving creditors from the EU and allied countries, has significantly affected the traditional methods of resolving business disputes. Despite the legal barriers to court-ordered debt collection, negotiations have proven to be an effective strategy, leading to amicable agreements that bypass legal and political roadblocks.

Additionally, sanctions have created complexities in financial transactions, making it crucial for creditors to seek professional legal assistance in navigating these challenges.

Why choose our legal firm?

Our law firm specializes in debt recovery in Belarus, providing end-to-end legal support for businesses. With extensive experience in pre-trial negotiations, judicial proceedings, and notarial enforcement, we ensure that each case is handled efficiently, respecting the legal framework and adjusting to the current economic environment. We work closely with our clients to develop tailored strategies that increase the chances of successful debt recovery.

Numbers and facts

• 10 days: timeframe for the debtor to contest a simplified order.
• 85% success rate in debt recovery through pre-trial negotiations in Belarus.
• 40% of debt disputes are settled before they reach court due to effective negotiation strategies.

In the current economic and geopolitical climate, the importance of professional legal support for debt collection in Belarus cannot be overstated. Whether through order-based, notarial, or judicial proceedings, our firm ensures comprehensive and effective solutions tailored to the specific needs of your business. Given the moratorium on debt enforcement for certain foreign creditors, pre-trial negotiations have become the most practical and efficient tool for debt recovery.

If you are facing issues with debt collection in Belarus, contact our team today for expert advice. Let us help you resolve your business disputes and recover your debts efficiently, regardless of the complexities imposed by sanctions.