Hopes on Chinese Yuans foundered
18:40, — Economics
The National Bank of Belarus was making a serious and detailed preparation for the visit of the Zhou Xiaochuan, the President of the People's Bank of China. Head of the National Bank Pyotr Prakapovich pit his hopes on a portion of intensive investment in banking sector of Belarus as a result of the visit.
Lukashenka had great hopes for Chinese investments, too. That’s why he spoke to the Chinese banker that China is a huge powerful state, and he will fulfil the promise to “be a real friend and stronghold of China in Europe.”
But, in spite of Lukashenka’s statements on allegedly serious interest of Chinese investors in the Belarusian economy and that every Belarusian “knows and appreciates the friendship with China”, the Chinese party made sure again there’s nothing to do in this country for people. Nothing from the economical point of view, AFN reports.
China would have nothing against some investments in the banking sector of Belarus. The talks on it have been carried out for a long time. More than a year ago a representative delegation of Chinese bankers arrived in Minsk. They wandered sadly the biggest banks, accepted by Chinese as just small cash departments, and came back quietly.
“Some” investments by Chinese standards, mean huge money in Belarusian knowledge of subject. And so participation of the Chinese capital could be considered as purchase of a block of stocks of one of the state banks, and in first turn, shares of joint stock venture Belarusbank. But as it is known, a moratorium on sale of shares of four biggest state banks has been imposed till 2011. So, Chinese have no chances in this sphere for the moment or at all (Belarus prefers European investments in these banks).
China doesn’t want to create a new bank in Belarus today. According to Zhou Xiaochuan, there’s no talk on opening bank subsidiaries, and it will ne possible to speak about it only after increasing of mutual trade volumes and investments between the two countries.
The volume of Chinese investments in Belarusian economy grows extremely slow and painful for Belarusian propagandists, who likes to shout in style “Let’s fulfil 3 five-year plans within 2 Belarusian years”. The experimental project – Best, third mobile operator of GSM standard, is stuck. China declared the Chinese party fulfil all the requirements – the equipment had been delivered and mounted. But 200.000 subscribers are not what the Chinese party would want to see. The Chinese officials don’t need such projects – creation of mobile carrier in a Chinese province.
As a result more than USD 200 million in equipment for Best, half a billion for expansion of three cement plants and reconstruction of the Minsk thermal power station-2 with amount of finance of USD 46 million do not make up the sum of USD 1 billion that Lukashenka had promised yet in December, 2005. At that, it should be noted that all investments and credits mentioned, are interconnected, in other words in all three cases we speak here about supply of produced in China equipment.
As any visit of such an important person as a president of the main bank in China, it can’t finish with zero result. The parties agreed on signing the document, according to which economic agents of Belarus and China will operate in national currency, most likely in Chinese Yuans rather than in Belarusian rubles. It’s just an experiment yet, though, as Belarusian official persons think, Belarus has been preparing for that issue seriously – yet in summer 2007 it included the Chinese Yuan into international reserve assets of Belarus.
What can be said more?
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