EBRD won’t finance regime of Lukashenka
- 12.08.2010, 9:40
Belarus is left without projects and financial backing of the European Bank for Reconstruction and Development this year.
It’s worth noticing that the last year showed record-breaking activity in relations between the international financial corporation and Belarus, “Zavtra Tvoey Strany” says.
The International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and other international financial institutions along with private investors are important sources of economic resources for developing countries.
The EBRD, which was created to support market reforms in 29 countries, carries out its activity in a large region from central Europe to central Asia. Being one of the largest investors in the region it attracts significant volumes of direct foreign investments in addition to allocating own money. The Bank mainly invests in private enterprise usually together with commercial partners and backs both new ventures and existing companies. The organization also works with publicly owned companies to support privatization, restructuring state-owned firms and improvement of municipal services.
EBRD started working with Belarus in 1992. The country is ranked 23d according to the Bank’s raised funds. In 1992-2010, the Bank launched 27 projects and invested 300.8 mln euros in the country. As in Slovakia, Slovenia, Estonia, Turkey, and Mongolia, EBRD chose private ventures as its partners in Belarus.
Among 29 countries, only enterprises and public organizations of Turkey, Mongolia, Kyrgyzstan, Turkmenistan, Tajikistan, and Montenegro received less from the investor.
The year 2009 was remarkable for some changes in relations between Belarus and EBRD. The largest ever number of projects with Bank’s participation on different levels was launched. They include aid to Belgazprombank and Minsk Transit Bank for financing small business, a loan to Pinskdrev company, and purchasing a 25% stake in Buslik children’s retailer.
Some investors expected the structural investors, such as IFC and EBRD, to increase injecting money in the Belarusian private sector in the situation when interest of private capital in investing the Belarusian economy has decreased due to the global financial crisis.
This forecast hasn’t come true. According to “Zavtra Tvoey Strany”, though the IFC announced two projects in Belarus, they are still on the stage of negotiations. Some Belarusian private companies held negotiations with EBRD. The EBRD Annual Meeting in May was attended by representatives of Belarusian Pinskdrev and Kravira companies, which consider EBRD as another source of financing.
EBRD didn’t approve any Belarusian projects in January-July 2010.