Dagong Credit Rating to Belarus
April 26, 2012, the Chinese rating agency Dagong Cregit Rating Co., Ltd. assigned to Belarus sovereign credit ratings \"BB +\" - for liabilities in the national currency and \"BB-\" - for liabilities in the foreign currency. The outlook is \"stable.\"
The decision was taken following the work of Dagong analysts in Belarus in February 2012. An agreement with the rating agency on assigning the sovereign credit rating to Belarus was signed in November 2011.
Assigning the sovereign credit rating, according to Dagong Credit Rating agency, will open up the financial markets of South-Eastern Asia to Belarus. The government is likely to place bonds on the stock exchanges and the OTC market among residents of China, Hong Kong, Singapore, etc.
Moreover, the expansion of trade and investment and credit co-operation with Asian companies is expected, since, according to the Dagong evaluation, the sovereign credit ratings of Belarus is several notches higher than the credit ratings from agencies Standard & Poor’s and Moody’s.
At present, Dagong Credit Rating is one of the major Chinese rating agencies that rates bonds of 10 thousand companies worth about $ 1 trillion and bank loans worth more than $ 110 billion.
For reference. According to the National Statistical Committee, the volume of foreign trade between Belarus and China (including Hong Kong and Taiwan) decreased in January-February 2012 by 10%, compared to the previous year, to 358.322 million dollars. The exports of Belarusian goods fell by 24.8% to $ 56.583 million and the imports of Chinese goods declined by 6.5% to $ 301.739 million.
Direct Chinese investments into the Belarusian economy in 2011 reduced by 1.8 times, to $ 9,862 million.
As of January 1, 2012, China accounts for 8.3% of Belarus’ total external debt (in monetary terms, the external debt to China is about $ 2.824 billion). The major borrowers are the Belarusian government and the National Bank of the Republic of Belarus.
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.