Stocks of state banks to be offered for sell

The Belarusian authorities reckon on the renewal of the bank system reforming after the recent crisis wave.

JSC Belarusian Bank for Reconstruction and Development “Belinvestbank” and JSC Paritetbank offer to acquire their control stocks; minority stakes of JSC Savings Bank “Belarusbank” and JSC Belagroprombank can be purchased as well. In accordance to the resolution of the Belarusian government and the National Bank individual strategic investors will be given top priority. Russian JSC VTB Bank is known to be interested in buying out 28,6 % of stocks of Belarusian CJSC VTB Bank in order to turn it into a wholly-owned subcidiary.

At the moment the state (i.e the National Bank being controlled by the authorities) possesses 100 % of stocks of all banks above except Belarusian CJSC VTB Bank.

The issue of privatization of the Belarusian banks was repeatedly broached. According to investment consultant and analyst Mikhail Barazdzin, the reform process was suspended due to the global economic crisis and the Belarusian crisis of 2011 in particular. “The political climate and state guarantees for investors are also taken into consideration. For the time being the external debt crisis of Belarus is continually increasing while its investing image has dropped to an all-time low despite all attempts to liberalize the economy.“

In view of the independent experts, state bank stock price will be subject to the conditions of attracting foreign investments.

Meanwhile, soon two new banks, CJSC Bit Bank and CJSC Eurosetbank, might start operating in Belarus. Their authorized capitals will be made on account of foreign funds. The banks aim at providing corresponding services to a number of large investors implementing their projects in the territory of Belarus.

Currently in the republic there are 31 registrated banks, 26 of which having foreign funds.


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