Authorities prepare to sell enterprises “for billions”

The government is in urgent need of money from selling the state property.

The State Property Committee of Belarus makes a list of big enterprises with the state's stake, the privatisation of which could bring billions of dollars to the state budget.

“We should talk about big enterprises to get billions,” Interfax-West learnt from chairman of the State Property Committee Heorhy Kuzniatsou during the phone conversation. He answered a journalist's question about the task of PM Mikhail Mianiskovich, who ordered the ministries and regional authorities to earn at least $1.5bn from privatisation in the fourth quarter of 2013 and the first quarter of 2014.

The Committee's head said his agency had already sent the government a list of about 100 enterprises ready for privatisation. “I don't count small companies. Their book value is $600m. Almost 100 enterprises cost $600m. How can we get $1.5bn?” he asked.

Kuzniatsou turned attention to the fact that any enterprise with the state's stake could be put up for a tender.“Any enterprise can be privatised. If there are people wanting to buy it, we will appraise its value, work out sales conditions and put it up for a tender,” he stressed.

The Committee's head noted that an appraisal of the market value was needed. “If we see that they [potential investors] show interest, we will carry out an appraisal,” Kuzniatsou said. He emphasissed that the process could take time and cost money. “The appraisal of a small company takes at least a month,” he said.

“Why should we hold onto the enterprises that exist due to subsidies from the state? They ask money from the state budget. They probably need privatisation and an owner to solve their problems, give money for upgrading or change their profile,” he continued. Kuzniatsou said: “Some companies were sold in 2011. None of them came later to ask money from the state budget. They work, earn money, pay salaries and taxes.”

We remind that Miasnikovich criticised this year's privatisation process and said the campaign had failed. He said the State Property Committee has a week to prepare proposals for the Council of Ministers to assign privatisation targets for every ministry and regional authorities to earn at least $1.5bn in the fourth quarter of 2013 and the first quarter of 2014. “The inflow of this sum to the country's gold and foreign currency reserves will help stabilise the loans and deposits market and give an opportunity to reduce interest rates on ruble loans,” he said.