Big sale

Belarus expects $4.5bn from privatization.

Belarus expects to get up to $4.5 billion from selling state-run property to strategic investors, reads Joint Resolution No. 895/15 of the Government and the National Bank dated 10 October 2013. The text of the resolution is available on the official website of the Council of Ministers.

The document approved a joint action plan of the Government and the National Bank to fuel the country’s economic growth. The plan provides for a number of measures related to state-run property management and privatization. Belarus will use a sector-wise approach to privatization of state-run property. The proposals on the sale of state-run assets will be systematized taking into consideration the category of the asset, potential investor, timelines and privatization mechanisms, etc.

According to the plan, the State Property Committee will be authorized to sell unused and poorly managed state-run assets at their market value using the application-based principle on the basis of the established list of assets. They will also be able to sell uncompetitive, steadily insolvent organizations at one base amount.

Local governments will be authorized to increase taxes (up to 10 times) on property as well as the land tax (rental payments) on unused (inefficiently used) property.

The work will continue to prepare big, highly liquid open joint-stock ventures for IPO on Belarusian and foreign stock markets in 2014-2015.