Recent legal & business developments in Belarus, July 2009
1. On July 1, 2009 International Rating Agency Standard&Poor has approved sovereign credit ratings of Belarus. Long term and short term ratings of obligations in foreign currency have been approved at the level of B+/B, ratings of obligations in national currency – at the level of BB/B. Forecast of ratings – “negative”.
2. On July 2, 2009 Belarus has received second tranche of IMF скувше in the amount of 679,2 mln. dollars. The full amount of credit program stand-by for Belarus has been raised up to USD 3,52 billions, on approx. 1 billion.
3. On July 7, 2009 International Rating Agency Fitch Ratings has changed its forecast regarding four Belarusian state banks (Belarusbank, Belagroprombank, BPS-bank and Belinvestbank) as well as two other large banks Belgazprombank and VTB (Belarus) from “stable” to “negative”.
4. “Bad credits” in bank system of Belarus have increased twice during the first half of the year. According to the National bank data, great part of “bad credits” is connected with financing of state programs, which is accomplished by state banks.
5. Heads of Association of Banks of Italy (ABI) have expressed their interest towards privatization of Belarusian state banks in the future.
6. During the next two years “Lidskoye pivo”, one of the oldest beer producers in Belarus, plans to invest in its industry up to 26 million dollars. This money will be directed on logistics, construction of warehouses, increasing of production capacity, which is planned to be increased up to 30 %. In the year 2008 Finnish concern “Olvi” has purchased 51% of shares of “Lidskoye pivo”.
7. Since July 28, 2009 the National bank of the Republic of Belarus has prohibited issuing bank credits to individuals in foreign currency. This measure is aimed to decrease using of foreign currency between individuals. This measure is temporary – till 1 January 2011. However, as the Head of Board of the National Bank said, the National Bank is of the opinion, that such measure should be prorogated after 1 January 2011. The strategic aim of the National bank – is to minimize usage of foreign currency in the country.
8. On July 28, 2009 the Minister of Foreign affairs of Belarus has participated in the meeting with representatives of European Union. During the press conference, which was held on the results of the meeting, the EU commissioner, Benita Ferrero-Waldner said, that EU wants to see Belarusian goods on its market and expressed intent to support Belarus financially during the next year.
