BEROC issues an analytical report exploring foreign investments in Belarus

The paper outlines major trends, studies privatization, portfolio investments, and other external liabilities, as well as analyzes measures to raise external financing and improve investment climate.

The background for research says that in 2013 inflows of foreign investments in Belarus remained almost negligible, the official attitude to privatization remained unchanged, which makes foreign loans the main source of inflow of foreign capital to the country. Tough economic situation made it very hard to place Eurobonds in foreign markets, and forced the authorities to explore the domestic debt market. Also, the report doesn’t neglect the legislative moves made to improve the business and investment climate of the country.

Judging by all the above mentioned factors, “it is quite likely that in 2014, Belarus will have to get rid of some major state-controlled assets, as privatization remains virtually the only source of attraction of external financing, which is crucial for the national economy”, concludes the report, adding that one more indicator of the readiness for privatization is “the decision of the government to allow state companies to get rid of non-core assets”.

The prognosis that the research gives for 2014 is that the problems accumulated in the national economy are to change the pattern of raising foreign resources will change in 2014. “The need for economic reforms remains in place and encourages the authorities to revise their attitude to the privatization process and use it as an instrument that can facilitate the renewal of production assets and introduction of innovation, which are important prerequisites for enhancing the competitiveness of the Belarusian economy”.

The analytical report is translation from Russian and was published in “Belarusian Yearbook – 2013”.

You can find the whole document in English here.

The political paper was prepared by Mariya Akulava and originally published on BEROC