Preventive restructuring in the banking system: a three-tier hybrid model for the Republic of Belarus
Keywords:
preventive restructuring, non-performing assets, credit risk, out-of-court restructuring, creditor coordinationAbstract
Relevance. The resilience of the banking sector to external and domestic shocks depends not only on the stock of accumulated risks, but also on the speed and effectiveness of banks’ responses to early signs of borrower distress driven by rising leverage. Preventive restructuring is conceptualized as a set of measures aimed at preventing temporary financial difficulties of viable firms from turning into persistent arrears and a buildup of non-performing assets.
Objective. The article aims to identify key directions for the implementation of preventive restructuring within the banking practice of the Republic of Belarus.
Methods and Data. The study applies methods of comparative institutional and legal analysis, a systems approach, and logical and structural synthesis. The empirical base includes documents of international financial institutions, regulatory acts of the National Bank of the Republic of Belarus, and data on long-term lending to small and medium-sized enterprises.
Contribution. The paper refines the concept of “preventive restructuring” in the context of the banking system and distinguishes it from the broader framework of out-of-court restructuring. It develops a three-tier hybrid model of preventive restructuring for the Republic of Belarus (early identification and diagnostics; financial and operational restructuring; institutional support).
Practical Implications. The findings can inform improvements in the regulatory framework governing debt restructuring, asset classification, provisioning (loan loss reserves), and interbank coordination mechanisms in dealing with viable borrowers.
References
Goretti, M. Macro-Financial Implications of Corporate (De)Leveraging in the Euro Area Periphery / M. Goretti, M. Souto. – Washington, DC : International Monetary Fund, 2013. – 24 p. – (IMF Working Paper ; WP/13/154). – URL: https://www.imf.org/external/pubs/ft/wp/2013/wp13154.pdf (date of access: 15.03.2026).
Flattening the Insolvency Curve: Promoting Corporate Restructuring in Asia and the Pacific in the Post-COVID-19 Recovery / A. Bauer, R. Craig, J. Garrido [et al.]. – Washington, DC : International Monetary Fund, 2021. – 40 p. – (IMF Working Paper ; WP/21/16). – URL: https://www.imf.org/-/media/files/publications/wp/2021/english/wpiea2021016-print-pdf.pdf (date of access: 17.03.2026).
Restructuring and Insolvency in Europe: Policy Options in the Implementation of the EU Directive / J. Garrido, C. DeLong, A. Rasekh [et al.]. – Washington, DC : International Monetary Fund, 2021. – 53 p. – (IMF Working Paper WP/21/152). – URL: https://www.imf.org/-/media/files/publications/wp/2021/english/wpiea2021152-print-pdf.pdf (date of access: 18.03.2026).
Supporting Firms in Restructuring and Recovery. EFI Insight-Finance, Competitive-ness and Innovation. – Washington, DC : World Bank, 2021. – 59 p. – URL: https://documents1.worldbank.org/curated/en/306401616131450724/pdf/Supporting-Firms-in-Restructuring-and-Recovery.pdf. (date of access: 21.03.2026).
Об урегулировании неплатежеспособности : Закон Респ. Беларусь от 13 июля 2012 г. № 415 З : в ред. по сост. на 17 дек. 2022 г. № 228 З // Национальный правовой Интернет портал Республики Беларусь. – URL: https://pravo.by/document/?guid=12551&p0=H12200227 (дата обращения: 29.03.2026).
О реструктуризации задолженности и прекращении обязательств : Указ Президента Республики Беларусь, 24 мая 2018 г., № 200 // Национальный правовой Интернет-портал Республики Беларусь. – URL: https://pravo.by/document/?guid=12551&p0=P31800200 (дата обращения: 30.03.2026)
Инструкция о порядке формирования и использования специальных резервов на покрытие возможных убытков по активам и операциям, не отраженным на балансе : [утв. постановлением Правления Нац. банка Респ. Беларусь от 28 сент. 2006 г. № 138 (в ред. постановления Правления Нац. банка Респ. Беларусь от 15 дек. 2017 г. № 505) : вступ. в силу с изм. утв. постанов-лением Правления Нац. банка Респ. Беларусь от 30 мая 2025 г. № 141]. – Мн. : Национальный банк Республики Беларусь, 2025. – URL: https://www.nbrb.by/legislation/documents/pp138.pdf (дата обращения: 02.04.2026).
МСФО (IAS) 37 «Оценочные обязательства, условные обязательства и условные активы» : обзор применения / Центр бухгалтерского учета и аудита. – Минск : Центр БГУ, 2024. – URL: https://cbg.by/for-specialist/tpost/nrmrbe6641-msfo-ias-37-otsenochnie-obyazatelstva-us (дата обращения: 22.03.2026)
Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (Directive on restructuring and insolvency) // Official Journal of the European Union. – 2019. – L 172. – P. 18–55. – URL: https://eur-lex.europa.eu/legal-con-tent/EN/TXT/?uri=CELEX%3A32019L1023&qid=1775106590610 (date of access: 19.03.2026).
Tölö, E. How Much Do Non-Performing Loans Hinder Loan Growth in Europe? / E. Tölö, M. Virén // European Economic Re-view. – 2021. – Vol. 136. – Art. 103773. – URL: https://www.sciencedirect.com/science/article/abs/pii/S0014292121001264 (date of access: 25.03.2026).
The Macroeconomic Impact of NPLs in Euro Area Countries / I. Huljak, R. Martin, D. Moccero [et al.] // SUERF Policy Note. – 2020. – No 185. – Vienna: SUERF. – 10 p. – URL: https://www.suerf.org/wp-con-tent/uploads/2023/12/f_6e16f49067dd5601bc1afc8296ab5801_15979_suerf.pdf (date of access: 03.04.2026).
Thematic Review on Out-of-Court Corporate Debt Workouts: Peer Review Report. – Basel: Financial Stability Board, 2022. – 64 p. – URL: https://www.fsb.org/uploads/P090522.pdf (date of access: 04.04.2026).
Zombie Lending: Theoretical, International and Historical Perspectives / V. V. Acharya, M. Crosignani, T. Eisert [et al.]. – Cambridge, MA : National Bureau of Economic Research, 2022. – 28 p. – (NBER Working Paper ; № 29904). – URL: https://www.nber.org/papers/w29904 (date of access: 05.04.2026).
Ari, A. The Dynamics of Non-Performing Loans During Banking Crises: A New Database / A. Ari, S. Chen, L. Ratnovski. – Washington, DC : International Monetary Fund, 2019. – 43 p. – (IMF Working Paper WP/19/272). – URL: https://www.imf.org/-/media/files/publications/wp/2019/wpiea2019272-print-pdf.pdf (date of access: 07.04.2026).
Poland: Business Reorganisation Assessment / European Bank for Reconstruction and Development. – London : EBRD, 2022. – 13 p. – URL: https://ebrd-restructuring.com/storage/uploads/documents/13472%20EBRD%20(Poland%20Country%20Profile%20ARTWORK).pdf (date of access: 10.04.2026).
Croatia: Business Reorganisation Assessment / European Bank for Reconstruction and Development. – London : EBRD, 2023. – 13 p. – URL: https://ebrd-restructuring.com/storage/uploads/documents/EBRD%20Updated%20CP%20CROATIA%2019.12.2023.pdf (date of access: 10.04.2026).
A Toolkit for Corporate Workouts / World Bank. – Washington, DC: World Bank, 2022. – 128 p. – URL: https://documents1.worldbank.org/curated/en/982181642007438817/pdf/A-Toolkit-for-Corporate-Workouts.pdf (date of access: 02.04.2026).
Creditor coordination in resolving non-performing corporate loans / J. Fell, M. Cajnko, M. Fandl [et al.] // Financial Stability Review. – 2021. – November. – Frankfurt am Main: European Central Bank. – URL: https://www.ecb.europa.eu/press/financial-stability-publica-tions/fsr/special/html/ecb.fsrart202111_03~c2d5efd0e9.en.html (date of access: 08.04.2026).
Prudential treatment of problem assets – definitions of non-performing exposures and forbearance : guidelines / Basel Committee on Banking Supervision. – Basel : Bank for International Settlements, 2017. – 41 p. – URL: https://www.bis.org/bcbs/publ/d403.pdf (date of access: 24.04.2024).
Guidance on credit risk and accounting for expected credit losses / Basel Committee on Banking Supervision. – Basel : Bank for International Settlements, 2015. – 33 p. – URL: https://www.bis.org/bcbs/publ/d350.pdf (date of access: 25.04.2024).
Guidelines for identifying and dealing with weak banks / Basel Committee on Banking Supervision. – Basel : Bank for International Settlements, 2015. – 67 p. – URL: https://www.bis.org/bcbs/publ/d330.pdf (date of access: 26.04.2024).
О создании и деятельности открытого акционерного общества «Агентство по управлению активами» : Указ Президента Респ. Беларусь от 14 июля 2016 г. № 268 // Национальный правовой Интернет‑портал Республики Беларусь. – URL: https://pravo.by/document/?guid=12551&p0=P31600268 (дата обращения: 02.04.2026).
Financing SMEs and Entrepreneurs 2020: An OECD Scoreboard / Organisation for Economic Co-operation and Development. – Paris: OECD Publishing, 2020. – 314 p. – URL: https://www.oecd.org/content/dam/oecd/en/publications/reports/2020/04/financing-smes-and-entrepreneurs-2020_3ddd9917/061fe03d-en.pdf (date of access: 11.04.2026).
Belarus – Environmental and social management framework for the Micro, Small and Medium Enterprise Access to Finance Project: restructuring paper, report no. 099062623155036741. – Washington, DC: World Bank, 2023. – URL: https://documents.worldbank.org/en/publication/documents-re-ports/documentdetail/099062623155036741 (date of access: 07.04.2026).
Статистический бюллетень. № 3 (321) 2026 // Национальный банк Республики Беларусь : официальный сайт. – Мн., 2026. – URL: https://www.nbrb.by/publications/bulletin/stat_bulletin_2026_03.pdf (дата обращения: 01.05.2026).
Среднесрочная программа деятельности Национального банка и финансового сектора на 2026–2030 годы : постановление Правления Национального банка Респ. Беларусь, 11 февр. 2026 г., № 38 // Национальный банк Республики Беларусь : официальный сайт. – Мн., 2026. – URL: https://www.nbrb.by/legislation/documents/pp_38-2026.pdf (дата обращения: 20.03.2026).
Downloads
Published
How to Cite
Issue
Section
License
he author provides the Editorial Board of the journal for the entire duration of the exclusive rights to the Work the following rights:
1. the right to reproduce the Work (publication, publication, duplication, duplication or other reproduction of the Work) without restriction of copies. In addition, each copy of the Work must contain the name of the author of the Work;
2. the right to distribute the Work in any way;
3. the right to be included in the composite work;
4. the right to be communicated to the public;
5. the use of metadata (title, name of the author (copyright holder), annotations, bibliographic materials, etc.) of the Works by distributing and making available to the public, processing and systematization, as well as inclusion in various databases and information systems.
6. the right to transfer, on a contractual basis, the rights partially or fully obtained under this contract to third parties without payment to the Author of remuneration.
The author transfers the rights to the Editorial Board under this Agreement on the basis of a non-exclusive license.
The editorial staff is obliged to observe the copyrights provided for by the current legislation, the rights of the Author, as well as to protect them and take all possible measures to prevent copyright infringement by third parties.
The territory in which the use of rights to the Works is allowed is not limited.
The author also provides the Editorial Board with the right to store and process the following personal data with no time limit:
• Full Name;
• Date of Birth;
• education information;
• information about the place of work and position;
• information on the availability of published works of literature, science and art.
Personal data are provided for their storage and processing in various databases and information systems, their inclusion in analytical and statistical reporting, the creation of reasonable interrelationships of objects of science, literature and art with personal data, etc.
The editorial board has the right to transfer the specified data for processing and storage to third parties, subject to notification of such a fact with the provision of information about a third party (name and address) to the Author.
The withdrawal of consent to the storage and processing of personal data is made by the Author by sending a written notice to the Editorial Board.
The author and the Editorial Board of the journal bear, according to the current legislation of the Republic of Belarus, property and other legal responsibility for non-fulfillment or improper fulfillment of their obligations.
The Party that improperly performed or did not fulfill its obligations is obliged to indemnify the losses incurred by the other Party, including lost profits.
All disputes and disagreements of the Parties arising from the terms of this Agreement shall be settled by negotiation, and if they fail, the indicated disputes shall be settled in court in accordance with the current legislation of the Republic of Belarus.
The termination of this agreement is possible at any time by mutual consent of the Parties, with the obligatory signing of the relevant agreement by the Parties.
Termination of this agreement unilaterally is possible in cases stipulated by the current legislation, or by a court decision.
In all that is not provided by this agreement, the Parties are guided by the norms of the current legislation of the Republic of Belarus.
