Leanid Zlotnikau: Country needs money, so Golden Share was abolished

Alyaksandr Lukashenka signed a decree, waiving institution of a special right of the state to interfere with management of an enterprise, on 4 March. Belarusian economist Leanid Zlotnikau thinks this decree is a forced step.

“Abolishing of Golden Share will create favourable conditions for enhancing Belarus’ rating at the international level and will defend investors’ rights at the stock market,” Lukashenka’s press service says.

As Belarusian economist Leanid Zlotnikau thinks, repeal of Golden Share was a forced step. But, as the expert said in the interview to Deutsche Welle, this measure wouldn’t improve the situation with investing Belarusian economy if other business conditions were not changed.

– From the one hand, competitiveness of the Belarusian economy is decreasing. For instance, growth of prices of Belarusian export fell behind prices of the Belarusian import last year. We have to repay the debts, we borrowed previous years. We need about USD 7000-800 million for debt service. And it is the additional sum to what had been two years ago. Moreover, grant support of the Belarusian economy is decreasing.

In other words, the economic situation in the country has been getting worse and the state needs a considerable sum for economy modernisation to gain competitiveness in some way. It follows that external borrowing are needed. Belarus has many conditions that are more difficult for investors than ones in the neighbouring countries. Nobody wants to invest. Direct foreign investments amounted to 0.6 per cent last year, while their average amount in the world is 16 per cent, and 22 per cent for processing industry. In general, the state needs money, so the government has had to abolish Golden Share.

– How can waiving of Golden Share affect foreign investors in Belarus?

– As other unfavourable for foreign investors conditions remain, abolishing of Golden Share won’t change the situation considerably. Additional steps are needed.