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Belarus EU Press Review: October/2011

Belarus-EU Press ReviewForeign Banks Halt Dealing with Belarus

Two more foreign banks, part of a syndicate, by which the government of Belarus carried out the international loans, halt cooperation with the Belarusian authorities. Deutsche Bank and BNP Paribas French have agreed on such a step over the pressure on international human rights organizations.

Belarus set to raise $3.8bn in FDI in 2012

Belarus plans to raise $3.8 billion in foreign direct investment in 2012, including $2.5 billion through privatization projects, Economy Minister Nikolai Snopkov said during a Q&A telephone session in the Respublika newspaper.

Allocation of Belarusian Potassium Deposits to Foreign Investor Supported By Vlasova Mikhel and Partners Law Firm

In October 2011 the Republic of Belarus and a British company GCM Global Energy Plc have concluded an investment agreement. According to the agreement investor will enjoy an exclusive right to extract potassium salts from the Belarusian deposits. This is the first investment agreement concluded by the Republic of Belarus that allows a foreign investor to extract potassium salts.

Belarus’ Inflation Made up 83.2% YTD

In Belarus, the consumer price index for goods and paid services in October 11-18 was equal to 101.5% and 105% from the beginning of the month to the average September prices. The increase in prices amounted to 83.2%YTD. This was reported in the National Statistics Committee.

Belarus ahead of Russia and Ukraine in "Doing Business 2012"

October 20, the World Bank published the eighth annual report "Doing Business 2012," where Belarus won 69th place among 183 countries in the world. Of Belarus's neighboring countries, Latvia is located on 21st place, Lithuania – 27th, Poland – 62nd, Russia – 120th and Ukraine – 152nd. Kazakhstan, included in the Customs Union, occupies 47th position, while Kyrgyzstan – 70th.

IMF tells Belarus to reform

The International Monetary Fund on Monday stressed the need to restrain wage growth in Belarus and said the leadership of President Alexander Lukashenko would have to show clear commitment to reform if it hoped to secure new IMF credit.

EBRD: Crisis will Only Intensify in Belarus

Experts from the European Bank for Reconstruction and Development predicts strengthening of the crisis in Belarus. In October regional economic survey, published on October 18, the Bank downgraded growth forecast for the economy of Belarus for 2011-2012 due to the balance of payments crisis, observed in the country.

EBRD implements 33 projects worth $700m in Belarus

Thirty-three projects worth nearly $700 million have been implemented in Belarus with the participation of the European Bank for Reconstruction and Development (EBRD), the chief of the directorate of investments of the Economy Ministry of Belarus, Kirill Koroteyev, told reporters.

Belarus National Bank Raises Refinancing Rate by 35% per Annum

October 14, National Bank of Belarus raises the refinancing rate by 5% to 35% per annum. The corresponding resolution was adopted on October 12 by the National Bank. Last time such a refinancing rate operated in Belarus in April 2003.

Belarus to resume talks on WTO accession in 2011

Belarus intends to resume negotiations on joining the World Trade Organization this year, Deputy Foreign Minister of Belarus Alexander Guryanov stated at a seminar on 12 October to discuss the country’s foreign economic activity as part of the Customs Union.

Lukashenko: No Economic Crisis in Belarus

President of Belarus Alexander Lukashenko said during a press conference for Russian media on October 7 that there’s no general economic crisis as such in Belarus. According to him, Belarus is now faced with the problems in the fx market, but they can be solved.

Belarus to build second potassium factory

A second potash factory with the output capacity of 1.1 million tonnes of potassium per annum will be built in Belarus, said Prime Minister of Belarus Mikhail Myasnikovich as he met with Russian businessman and philanthropist Mikhail Gutseriyev on 5 October.

Foreign investors interested in pouring money into Belarus’ transport and logistics system

At present projects for transportation and logistics centers in Belarus are implemented using Italian, Belgian, Iranian, Czech, and Lithuanian investments.

Competition and De-bureaucratization should Make Core of Economy, Snopkov

October 4, Economy Minister Nikolai Snopkov stated at the extended meeting of the Council of Ministers with the participation of business representatives that "competition, the institution of ownership and de-bureaucratization can become the priority factors of economic growth."

Regular IMF Mission Starts Working in Minsk

Delegation of the International Monetary Fund will be working in Belarus on October 5-17. IMF experts, headed by Chris Jarvis, are going to monitor and evaluate the economic situation in the country. Deputy Economy Minister of Belarus Alexander Yaroshenko said October 4 that the Belarusian authorities are waiting for the IMF mission's new specific proposals for structural changes in the national economy.

India gets 1st right to buy stake in potash-maker Belaruskali

India will have the first right to buy stake in 100% Belarus government-owned Belaruskali, one of the world's biggest producers and suppliers of potash.

Belarusian Economy Gaining Momentum after Crisis, Rubinov

Speaker of the Council of the Republic of Anatoli Rubinov said, speaking at the opening of the seventh session, that the Belarusian economy is slowly gaining ground, despite a number of problems, including with foreign currency. According to the speaker, the Belarusian senators will have to take a series of "solutions to the dynamic development of society" within the new session.

S & P Downgraded Ratings of Four Belarusian Banks

International rating agency Standard & Poor's downgraded long-term and short-term credit ratings of four major Belarusian banks by one notch - Belvnesheconombank, Belagroprombank, BBK and BPS-Bank. Now, long-term ratings of banks are rated as "B-" with negative outlook, while short-term - "C." Rankings are derived from a list of banks on review for possible downgrading.

Belarus to enable most comfortable conditions for investors

Enabling a favorable business operation environment will be a national priority, said Sergei Rumas. The directive for the development of entrepreneurship initiative and encouragement of business activity in Belarus aims for it, too.

Following Belarus' Sovereign Ratings S&P Downgraded Ratings of Minsk

International rating agency Standard & Poor's downgraded the credit rating of Minsk from 'B' to 'B-' with negative outlook. In addition, the ratings are derived from the list of Minsk CreditWatch ("ratings on review"), where they were included in May 2011. Indicative level of solvency for Minsk was marked as "B+."

Belarusian Authorities Expect $18 Million from Privatization

The Belarusian authorities expect to receive Br100 billion ($17.91 million) from privatization in 2011. This was stated by the first deputy director of the State Property Fund (SPF), Petr Lukyanov, on September 29 in Minsk. He noted that the annual plan of privatization includes 180 companies, five of which were transferred to the National Agency of investment and privatization.

S&P Cuts Belarus Ratings On Reliance On International Loans

Standard & Poor's Ratings Services downgraded the sovereign credit ratings of Belarus a notch further into junk territory on concerns about the Eastern European nation's reliance on international loans.

Official Documents, Statements and Press-Releases