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 1st, 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.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.