ANNOUNCEMENT 04 Feb 2013

In February 2013, the government of Belarus announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 04 Feb 2013 | Removal date: 01 Feb 2028
Still in force

State loan

With Decree 57 of February 4, 2013, the President of the Republic of Belarus authorised the state financing of an investment project (EUR 15.73 million) in the confectionery industry. The purpose of this project is to build a confectionery factory as a part of the state strategy to increase competitiveness and modernisation of the Belarusian food industry.
In particular, the state financing scheme of the investment project foresees:

  • The Development Bank of the Republic of Belarus (JSC DBRB) to provide a credit facility to build the factory. This bank was established in 2011 with the purpose to facilitate the financing of state programmes and investment projects. According to article 1.1. of Presidential Decree 261, the founders of the Development Bank of the Republic of Belarus are the National Bank of Belarus and the Council of Ministers of Belarus. JSC DBRB can provide state loans under the market rate (see related GTA measures 4011 and 4012). Through this channel, the reported state measure is likely to harm foreign commercial interests.
  • The interest rate payments of the credit facility will be reimbursed from the 2013-2028 budget of the Vitebskaya administrative region.

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED SECTORS