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8 November 2011

Ineffective Belarusian enterprises to go private

MINSK, 8 November (BelTA) – Ineffective Belarusian enterprises will be transferred into private ownership, Deputy Economy Minister Alexander Yaroshenko told a session of the Council of Ministers of Belarus. The Belarusian economy will undergo considerable structural changes, he promised. They will be enforced to improve the stability and the competitive ability of the national economy, form a national proprietor and a competitive environment. Experts believe that at present state-run organizations account for up to 70% of the national economy. One in two of employed Belarusians works in the state-run economy, which accounts for about 60% of the fixed assets. The situation in Russia and Kazakhstan is totally different. Meanwhile, the share of unprofitable and low-profit enterprises in Belarus continues to remain high, constituting nearly half of the total number of registered organizations. Strict monetary management and open competition in the Single Economic Space can increase their number in 2012. The official believes Belarus should privatize ineffective small and medium enterprises that operate in the production sector. A complex approach to privatization taking into account economic security has been suggested. The approach provides for transferring low-effectiveness enterprises into private ownership while keeping state control over nearly 50% of the national economy. Privatization of small and medium enterprises operating in the production sector will rehabilitate the economy, cleansing it of ineffective assets. Initially there are plans to sell 619 enterprises for one base amount. There are plans to private over 2,000 enterprises via tenders.