Banks unlikely to acquire shares in authorized capital of enterprises with overdue debts
Draft amendments to the decree number of 2004 have been prepared, enabling private banks to acquire shares in the authorised capital of companies, which have overdue loan payments. The share of bad debts on loans in Belarus has increased up to 14.8% of all loans granted as of September 1st, 2016. The main culprits of overdue loan payments are the economic recession and the budget cuts on state funding programmes. Bad debts are likely to continue to accumulate in banks, lawsuits by banks against bankrupt enterprises are likely to grow in number and the volume of debtor assets’ sales is likely to increase. Problem debts of large state-owned enterprises will be restructured using budget resources and will become public debt. Since the banks lack specialised professionals to manage distressed enterprises, they are unlikely to acquire capital shares, except for a few cases. Banks would rather sell collateral on problem debts.
The Belarusian authorities regard the Catholic conference as yet another international event to promote Minsk as a global negotiating platform. Minsk’s proposal to organise a meeting between the Roman-Catholic Church and the Russian Orthodox Church is rather an image-making undertaking than a serious intention. However, the authorities could somewhat extend the opportunities for the Roman-Catholic Church in Belarus due to developing contacts with the Catholic world.
Minsk is attempting to lay out a mosaic from various international religious, political and sportive events to shape a positive image of Belarus for promoting the Helsinki 2.0 idea.
Belarus’ invitation to the head of the Holy See for a meeting with the Patriarch of the Russian Orthodox Church should be regarded as a continuation of her foreign policy efforts in shaping Minsk’s peacekeeping image and enhancing Belarus’ international weight. The Belarusian authorities are aware that their initiative is unlikely to find supporters among the leadership of the Russian Orthodox Church in Moscow. In Russia, isolationist sentiments prevail.
In addition, for domestic audiences, the authorities make up for the lack of tangible economic growth with demonstrations of growth in Minsk’s authority at international level through providing a platform for religious, sportive and other dialogues.