Belarus is ready to sell blocking stake in Belarusbank in attempt to attract large foreign capital

According to the Prime Minister’s regulation, a working group should be set up in Belarus in order to coordinate the sale of a minority stake at JSC Belarusbank before November 1^st, 2017. The main purpose is to attract equity capital in the Belarusian economy and optimise business processes in the bank. Overdue loans are likely to be transferred to the Development Bank, Belarusbank’s branch network and staff would be optimised. Due to the banks’ serious engagement in government programmes and weak financial performance, investors’ interest in the asset is unlikely to be huge. In addition, the state is likely to allow the sale only to a major Western financial institution. Since there may be no bids to purchase Belarusbank shares, the state may prepare documents for the sale of larger packages in other state-owned banks.