Leanid Zlotnikau: Authorities Throw Dust Into Creditors’ Eyes

The sale of “Krynitsa” and other objects can be stopped immediately upon receipt of the tranche from the IMF.

Yesterday, representative of the European Bank for Reconstruction and Development in Belarus Francis Delay said that the government of Belarus received a request for assistance in privatization of five large state-owned enterprises. Among the enterprises that were put on sale, according to the media reports, were "Krynitsa", "Mostovdrev" and "Mogilevliftmash". It is expected that the European experts will conduct a comprehensive assessment of these businesses, and then find a strategic investor for each of them within 5-6 years.

"Solidarity" has asked economist Leanid Zlotnikau whether it means that the mass privatization is coming to Belarus.

— Firstly, it is one of the conditions for obtaining a loan by Belarus — privatization and liberalization of prices, — he has said in an express comment. — And since the acute economic situation develops (as we see by the budget, which is planned for 2017), they obviously plan to correct it with the help of a new debt and privatization.

The expert believes that by taking such steps, the government plans to earn more points in the eyes of the IMF, to finally get a loan:

— However, I do not think they are seriously going to switch to a market economy. It is worth remembering that Aliaksandr Lukashenka said during a meeting with the staff of the Homel factory "Spartak" — the government will proceed to a continuous price regulation.

According to the interlocutor, it directly contradicts the recommendations, which Belarus has received from the IMF.

—There have been many privatization projects regarding enterprises in the past as well, ¬— Leanid Zlotnikau recalls. — A couple of years ago it was planned to sell the Brest brewery. Back then they announced privatization, then announced a tender, but at the same time offered certain conditions. For example, that the future owner should invest so many millions in the creation of a new soft drink line, which should ensure the employment of employees and the average salary of no less than the average for the region, and the like.

The expert predicts that it will not take much effort from the authorities to slow down the started privatization process, and during this time the IMF can make a decision on a loan.