Belarus faces risks of losing access to foreign capital markets - S&P Global
<p> MINSK, Aug 13 - PrimePress. S&P Global Ratings has issued a statement indicating that Belarus faces short-term risks of losing access to international capital markets due to the growing prospects of international sanctions and the volatility of cash flows to emerging markets in the context of the COVID-19 pandemic. </p> <p> </p> <p> The threat of international sanctions on Belarus following the disputed election win of its authoritarian President Alexander Lukashenko on Sunday adds to the risks to its credit rating, S&P Global said on Wednesday. </p> <p> </p> <p> “Prospects of international sanctions in response to the (Belarus) authorities' handling of the situation are rising, in our view,” S&P’s two main sovereign analysts for the country said in a report. </p> <p> </p> <p> “Even though there is no immediate effect on our sovereign credit ratings on Belarus, we consider that downside risks are rising.” </p> <p> </p> <p> S&P’s points out that sanctions related to alleged human rights violations have been repeatedly imposed on Belarus in the past. In addition to the political implications, the new sanctions may have a negative impact on economic growth and investor confidence. </p> <p> </p> <p> The S&P forecast implies that Belarus’ economy is expected to contract by 4% in 2020, with a vulnerable balance of payments and budget performance, and a tight debt repayment schedule. </p> <p> </p> <p> In addition, it is necessary to take into account the current disagreements between Russia and Belarus on energy supplies, S&P said. Given the changes in taxation of oil companies in Russia, Belarus may no longer benefit fr om favorable prices for energy supplies. In the past, discussions on energy supplies have also affected Russia's willingness to provide support to Belarus in other forms, including direct funding, S&P analysts said. </p> <p> </p> <p> S&P currently rates Belarus in the non-investment grade B category and has a 'stable' outlook on the rating. </p> <p> </p> <p> As previously reported, mass protests started in Belarus following the Aug 9 presidential election, wh ere Alexander Lukashenko was declared the winner with 80.08% of the vote. The riot police use firearms, rubber bullets, tear gas, water cannons and stun grenades to severely suppress peaceful protest rallies in the capital city and regional centres. One person died, hundreds were wounded, thousands were detained. Western countries has condemned Minsk for excessive use of force, the European Union is considering targeted sanctions after claims of widespread vote rigging and a fierce crackdown on protests. End </p>
2020-08-14
Primepress
MINSK, Aug 13 - PrimePress. S&P Global Ratings has issued a statement indicating that Belarus faces short-term risks of losing access to international capital markets due to the growing prospects of international sanctions and the volatility of cash flows to emerging markets in the context of the COVID-19 pandemic.
The threat of international sanctions on Belarus following the disputed election win of its authoritarian President Alexander Lukashenko on Sunday adds to the risks to its credit rating, S&P Global said on Wednesday.
“Prospects of international sanctions in response to the (Belarus) authorities' handling of the situation are rising, in our view,” S&P’s two main sovereign analysts for the country said in a report.
“Even though there is no immediate effect on our sovereign credit ratings on Belarus, we consider that downside risks are rising.”
S&P’s points out that sanctions related to alleged human rights violations have been repeatedly imposed on Belarus in the past. In addition to the political implications, the new sanctions may have a negative impact on economic growth and investor confidence.
The S&P forecast implies that Belarus’ economy is expected to contract by 4% in 2020, with a vulnerable balance of payments and budget performance, and a tight debt repayment schedule.
In addition, it is necessary to take into account the current disagreements between Russia and Belarus on energy supplies, S&P said. Given the changes in taxation of oil companies in Russia, Belarus may no longer benefit fr om favorable prices for energy supplies. In the past, discussions on energy supplies have also affected Russia's willingness to provide support to Belarus in other forms, including direct funding, S&P analysts said.
S&P currently rates Belarus in the non-investment grade B category and has a 'stable' outlook on the rating.
As previously reported, mass protests started in Belarus following the Aug 9 presidential election, wh ere Alexander Lukashenko was declared the winner with 80.08% of the vote. The riot police use firearms, rubber bullets, tear gas, water cannons and stun grenades to severely suppress peaceful protest rallies in the capital city and regional centres. One person died, hundreds were wounded, thousands were detained. Western countries has condemned Minsk for excessive use of force, the European Union is considering targeted sanctions after claims of widespread vote rigging and a fierce crackdown on protests. End