EBRD expects to sustain Belarus investment portfolio at last year’s high in 2020 - Marina Petrov
<p> MINSK, Jun 5 - PrimePress. The European Bank for Reconstruction and Development (EBRD) counts on sustaining the 2020 volume of investments in Belarus at the level of 2019, when EBRD financing reached an all-time high of €390 million. Marina Petrov, Head of the EBRD Office in Belarus, mentioned these figures in an interview with PrimePress. </p> <p> </p> <p> Marina Petrov reminded that 2019 was a record-setting year for the EBRD business in Belarus. “This year our plans are being adjusted, but our role in the current situation, as well as the demand for our services, is only increasing. We continue supporting existing and new clients and expect that our annual investment volume will not decrease,” said Marina Petrov. </p> <p> </p> <p> The prospects of joint projects between the bank and the government of Belarus were discussed during a recent video conference meeting between the EBRD President and the Prime Minister of Belarus. According to Marina Petrov, the parties exchanged views on the impact of coronavirus on the economy of Belarus and the implementation of strategic projects in this regard. </p> <p> </p> <p> “The EBRD, in particular, stressed the importance of the country’s cooperation with the International Monetary Fund, expressed readiness to provide credit facilities to a number of Belarusian banks to stimulate trade operations and support small business enterprises. The bank also keeps working on important municipal infrastructure projects and with private investors. We have confirmed the bank’s interest in continuing cooperation in the privatization of industrial assets and concession of the M10 motorway,” said Marina Petrov. </p> <p> </p> <p> In Belarus, the bank is working with the government to prepare for the privatization of Krynitsa Brewery and Krasnoselskstroymaterials Cement Plant. The concession project of the M10 motorway - the first planned public private partnership project in Belarus - provides for the reconstruction of a 85.25 km segment of the M10 highway (the Russian border (Selishche) - Gomel - Kobrin). The road will become a transport corridor from Russia to the European Union in southern Belarus. </p> <p> </p> <p> Marina Petrov added that in 2020 in Belarus the EBRD will in the first place focus on implementing the already signed projects, both in public and private sectors. </p> <p> </p> <p> “It means that we are doing everything possible to stick to the schedule disbursing credit funds, as well as procuring goods and services in the public sector. We have a large portfolio of potential projects, which should allow us to maintain the pace of investment in the country at the level of previous years,” said the head of the EBRD Office in Belarus. </p> <p> </p> <p> She also shared the bank’s forecasts regarding the situation in the Belarusian economy: the EBRD expects Belarus’ GDP to decline by 5% in 2020 and expand by 3.5% in 2021. </p> <p> </p> <p> “On the eve of the coronavirus pandemic, the Belarusian economy was already in the slow-up phase. According to preliminary estimates, Belarus’ GDP declined by 0.3% year on year in the first quarter of 2020, amid a delay in reaching a new oil agreement with Russia, which led to a halt in oil deliveries to Belarusian refineries in early 2020. The coronavirus pandemic is likely to exacerbate this trend,” said Marina Petrov. </p> <p> </p> <p> The head of the EBRD Office noted that the refusal of Belarus to introduce strict deterrent measures against the spread of COVID-19 means that the reduction of domestic consumption will probably not be as sharp as in other countries. </p> <p> </p> <p> “However, it is expected that external demand will be significantly reduced due to the global recession. Expanded economic ties with Russia make Belarus even more vulnerable to lower oil prices and the expected recession in Russia,” said Marina Petrov. </p> <p> </p> <p> The European Bank for Reconstruction and Development is an international financial institution headquartered in London, created to support the economic transformations in Central and Eastern Europe. Since the start of its operations in Belarus in 1992, the EBRD has invested €2.917 billion in 134 projects in various sectors of the country’s economy. In 2016 the EBRD adopted a new strategy for operations in Belarus in 2016-2019. The document abolished the calibrated approach, which restricted EBRD operations with the public sector. Belarus and the EBRD have been implementing a number of projects in utilities industry, energy saving, transport infrastructure and environment protection. End </p>
2020-06-06
Primepress
MINSK, Jun 5 - PrimePress. The European Bank for Reconstruction and Development (EBRD) counts on sustaining the 2020 volume of investments in Belarus at the level of 2019, when EBRD financing reached an all-time high of €390 million. Marina Petrov, Head of the EBRD Office in Belarus, mentioned these figures in an interview with PrimePress.
Marina Petrov reminded that 2019 was a record-setting year for the EBRD business in Belarus. “This year our plans are being adjusted, but our role in the current situation, as well as the demand for our services, is only increasing. We continue supporting existing and new clients and expect that our annual investment volume will not decrease,” said Marina Petrov.
The prospects of joint projects between the bank and the government of Belarus were discussed during a recent video conference meeting between the EBRD President and the Prime Minister of Belarus. According to Marina Petrov, the parties exchanged views on the impact of coronavirus on the economy of Belarus and the implementation of strategic projects in this regard.
“The EBRD, in particular, stressed the importance of the country’s cooperation with the International Monetary Fund, expressed readiness to provide credit facilities to a number of Belarusian banks to stimulate trade operations and support small business enterprises. The bank also keeps working on important municipal infrastructure projects and with private investors. We have confirmed the bank’s interest in continuing cooperation in the privatization of industrial assets and concession of the M10 motorway,” said Marina Petrov.
In Belarus, the bank is working with the government to prepare for the privatization of Krynitsa Brewery and Krasnoselskstroymaterials Cement Plant. The concession project of the M10 motorway - the first planned public private partnership project in Belarus - provides for the reconstruction of a 85.25 km segment of the M10 highway (the Russian border (Selishche) - Gomel - Kobrin). The road will become a transport corridor from Russia to the European Union in southern Belarus.
Marina Petrov added that in 2020 in Belarus the EBRD will in the first place focus on implementing the already signed projects, both in public and private sectors.
“It means that we are doing everything possible to stick to the schedule disbursing credit funds, as well as procuring goods and services in the public sector. We have a large portfolio of potential projects, which should allow us to maintain the pace of investment in the country at the level of previous years,” said the head of the EBRD Office in Belarus.
She also shared the bank’s forecasts regarding the situation in the Belarusian economy: the EBRD expects Belarus’ GDP to decline by 5% in 2020 and expand by 3.5% in 2021.
“On the eve of the coronavirus pandemic, the Belarusian economy was already in the slow-up phase. According to preliminary estimates, Belarus’ GDP declined by 0.3% year on year in the first quarter of 2020, amid a delay in reaching a new oil agreement with Russia, which led to a halt in oil deliveries to Belarusian refineries in early 2020. The coronavirus pandemic is likely to exacerbate this trend,” said Marina Petrov.
The head of the EBRD Office noted that the refusal of Belarus to introduce strict deterrent measures against the spread of COVID-19 means that the reduction of domestic consumption will probably not be as sharp as in other countries.
“However, it is expected that external demand will be significantly reduced due to the global recession. Expanded economic ties with Russia make Belarus even more vulnerable to lower oil prices and the expected recession in Russia,” said Marina Petrov.
The European Bank for Reconstruction and Development is an international financial institution headquartered in London, created to support the economic transformations in Central and Eastern Europe. Since the start of its operations in Belarus in 1992, the EBRD has invested €2.917 billion in 134 projects in various sectors of the country’s economy. In 2016 the EBRD adopted a new strategy for operations in Belarus in 2016-2019. The document abolished the calibrated approach, which restricted EBRD operations with the public sector. Belarus and the EBRD have been implementing a number of projects in utilities industry, energy saving, transport infrastructure and environment protection. End