Report on the draft decrees concerning Belarus’ financial market development
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On 29 February Belarus President Aleksandr Lukashenko
heard out a report on the development of the financial market.
The President deemed it necessary to invite the developers of the normative legal acts to the meeting to listen to their opinions regarding the efficiency of the abovementioned measures.
In line with one of the draft decrees, National Bank of the Republic of Belarus (NBRB) can be authorized to regulate the insurance sector and the securities market. Aleksandr Lukashenko noted that as far as he knows these functions are now successfully performed by the Finance Ministry.
In this context, the President asked those present at the meeting about the effectiveness of changes in the system which is well-organized and rather efficient. After the discussion the head of state decided that the decision to authorize the National Bank of the Republic of Belarus (NBRB) to regulate the insurance sector and the securities market has been postponed for a year.
Apart from that, the meeting focused on the preferential taxation of the corporate bond yield. Aleksandr Lukashenko deemed it necessary to prolong tax preferences. The President wondered whether this move could result in the decrease in budget revenues. The head of state asked what the real value of the matter in dispute was, whether these funds will be handed over to enterprises, whether they will help improve the situation and raise the tax proceeds.
Corporate bonds can be issued by enterprises and banks to raise funds. The preferential regime was introduced in 2008 and proved efficient. The enterprises raise funds for development themselves, not with the help of banks. It is cheaper for them. As a result, corporate bonds are an alternative to bank loans. The preferential taxation of the corporate bond yield will be prolonged for 2016 and 2017.
Apart from that, the President was informed about the draft decree concerning the issue and circulation of shares using foreign depositary receipts. The head of state urged to evaluate possible risks and wanted to know whether this measure will benefit enterprises and the state, whether the inflow of foreign investments will increase. Aleksandr Lukashenko was informed that the draft decree enables enterprises to float up to 25% of shares using foreign depositary receipts. As a rule, such depositary receipts are issued by large banks and companies. Buying the shares of an enterprise, they place them on foreign financial markets. Therefore, the draft decree aims to raise the inflow of foreign investments and promote the shares of Belarusian joint-stock companies on the international capital markets. After the discussion the President approved of the draft decree.
The President deemed it necessary to invite the developers of the normative legal acts to the meeting to listen to their opinions regarding the efficiency of the abovementioned measures.
In line with one of the draft decrees, National Bank of the Republic of Belarus (NBRB) can be authorized to regulate the insurance sector and the securities market. Aleksandr Lukashenko noted that as far as he knows these functions are now successfully performed by the Finance Ministry.
In this context, the President asked those present at the meeting about the effectiveness of changes in the system which is well-organized and rather efficient. After the discussion the head of state decided that the decision to authorize the National Bank of the Republic of Belarus (NBRB) to regulate the insurance sector and the securities market has been postponed for a year.
Apart from that, the meeting focused on the preferential taxation of the corporate bond yield. Aleksandr Lukashenko deemed it necessary to prolong tax preferences. The President wondered whether this move could result in the decrease in budget revenues. The head of state asked what the real value of the matter in dispute was, whether these funds will be handed over to enterprises, whether they will help improve the situation and raise the tax proceeds.
Corporate bonds can be issued by enterprises and banks to raise funds. The preferential regime was introduced in 2008 and proved efficient. The enterprises raise funds for development themselves, not with the help of banks. It is cheaper for them. As a result, corporate bonds are an alternative to bank loans. The preferential taxation of the corporate bond yield will be prolonged for 2016 and 2017.
Apart from that, the President was informed about the draft decree concerning the issue and circulation of shares using foreign depositary receipts. The head of state urged to evaluate possible risks and wanted to know whether this measure will benefit enterprises and the state, whether the inflow of foreign investments will increase. Aleksandr Lukashenko was informed that the draft decree enables enterprises to float up to 25% of shares using foreign depositary receipts. As a rule, such depositary receipts are issued by large banks and companies. Buying the shares of an enterprise, they place them on foreign financial markets. Therefore, the draft decree aims to raise the inflow of foreign investments and promote the shares of Belarusian joint-stock companies on the international capital markets. After the discussion the President approved of the draft decree.