ANNOUNCEMENT 14 Nov 2013In November 2013, the government of Belarus announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
With Decree 511 of 14 November 2013, the President of Belarus approved the provision ofan investment loan (EUR 8.53million) in 2014-2016 from the state budgetary fund for national development to the export-oriented state-owned textile enterprise JSC "Sukno". Among its main export products are: woollen and semi-woollen fabrics, blankets and plaids as well as defence materials.
Furthermore, the government authorised the issuance of a state guarantee to cover the 2013-2016 (EUR 45.80million) and 2014-2015 (EUR 11.23million) loans, to be extended by Belarusbank. Their purpose is to increase the sales profitability and labour productivity in 2013-2024 of the enterprise. The first loan must be repaid not later than 31 December 2024; and the second in the period 2017-2023. However, the issuance and maturity dates of the state guarantee were not disclosed.
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.