Situation with Belgazprombank undermines investment climate in Belarus – expert
<p> MINSK, Jun 15 - PrimePress. Former head of the National Bank of Belarus (1991-1995), Honorary Chairman of the opposition United Civil Party Stanislav Bogdankevich says that the situation with Belgazprombank undermines Belarus’ investment attractiveness. </p> <p> </p> <p> The police searched the head office of the bank in Minsk. The State Control Committee claims that an organized criminal group operated at Belgazprombank run for two decades by presidential office seeker Viktor Babariko, transferring money to foreign accounts. Fifteen people were detained, including top managers of the bank. Babariko stays at large. He calls the attack on the bank a politically motivated act in anticipation of the presidential election scheduled for August 9. The National Bank of Belarus said on June 15 that an interim administration was appointed to Belgazprombank under the supervision of Nadezhda Yermakova. </p> <p> </p> <p> Earlier, the State Control Committee of Belarus reported that during the searches at the bank’s head office in Minsk and some other commercial entities, the police seized around illegally obtained $4 million in cash, $500,000 in securities, gold, bonds and digipasses. Belarus-1 state TV channel said on June 14 that around 150 paintings worth nearly $20 million were also seized. </p> <p> </p> <p> “Everyone [in Belarus] says that the country should be made attractive for private investors. This is being ruined by the government intervention in financial and economic activities. The law is breached. The authorities should not intervene,” Bogdankevich told Russian RIA Novosti. </p> <p> </p> <p> The expert considers it outrageous that the National Bank serves interests of certain external [in relation to the NBB] forces, the ongoing election campaign, instead of upholding the law. He underscores that the central bank must be independent, and, theoretically, its board should not even be changed if the government is changed, because financial and national currency stability and inflation depend on it. “The National Bank should be beyond politics, as prescribed by law in a law-governed state,” Bogdankevich said. </p> <p> </p> <p> He calls the appointment of the interim administration to Belgazprombank “arbitrariness on the part of the Belarusian authorities.” External administration may be advisable in case of bankruptcy or insolvency of a bank, or there are particular problems with its operation. “But the board was working well; the National Bank conducted annual audits at all banks, including Belgazprombank. Independent audit firms also conducted inspections. Belgazprombank is a private bank, not a state one. Owners decide how to utilize profits,” said the expert. </p> <p> </p> <p> The bank’s supervisory board includes Belarusian officials (former Prime Minister Andrei Kobyakov and business school head Pavel Daneyko). “How this takeover is supposed to improve the investment climate?” said the ex-head of the National Bank. </p> <p> </p> <p> Bogdankevich considers statements on Belgazprombank far-fetched and doubts that gross tax evasion may be detected in one day. He is amused that the bank is accused of legal purchases of paintings that were brought into the country and exhibited as a corporate collection, although this money could be used to pay dividends. “What is so bad that he bought paintings for Belarus? This [accusations] is a show for the common people. They found 4 million dollars at the bank. But where to find it, if not at a bank? Banks are established to store money,” the expert said, “This is one of the largest banks. Yes, it is a foreign bank, but it operates in Belarus, aiding by the laws of Belarus, and all resources are used for the benefit of Belarus.” </p> <p> </p> <p> Belgazprombank OJSC was established in 1990 as an authorized bank of Gazprom Group in Belarus. Russian Gazprom PJSC and Gazprombank JSC own 49.66% stake in Belgazprombank; Gazprom Transgaz Belarus – 0.49%; the Republic of Belarus represented by the Ministry of Energy of Belarus – 0.18%. . Belgazprombank belongs to Tier I Group. End </p>
2020-06-16
Primepress
Situation with Belgazprombank undermines investment climate in Belarus – expert
MINSK, Jun 15 - PrimePress. Former head of the National Bank of Belarus (1991-1995), Honorary Chairman of the opposition United Civil Party Stanislav Bogdankevich says that the situation with Belgazprombank undermines Belarus’ investment attractiveness.
The police searched the head office of the bank in Minsk. The State Control Committee claims that an organized criminal group operated at Belgazprombank run for two decades by presidential office seeker Viktor Babariko, transferring money to foreign accounts. Fifteen people were detained, including top managers of the bank. Babariko stays at large. He calls the attack on the bank a politically motivated act in anticipation of the presidential election scheduled for August 9. The National Bank of Belarus said on June 15 that an interim administration was appointed to Belgazprombank under the supervision of Nadezhda Yermakova.
Earlier, the State Control Committee of Belarus reported that during the searches at the bank’s head office in Minsk and some other commercial entities, the police seized around illegally obtained $4 million in cash, $500,000 in securities, gold, bonds and digipasses. Belarus-1 state TV channel said on June 14 that around 150 paintings worth nearly $20 million were also seized.
“Everyone [in Belarus] says that the country should be made attractive for private investors. This is being ruined by the government intervention in financial and economic activities. The law is breached. The authorities should not intervene,” Bogdankevich told Russian RIA Novosti.
The expert considers it outrageous that the National Bank serves interests of certain external [in relation to the NBB] forces, the ongoing election campaign, instead of upholding the law. He underscores that the central bank must be independent, and, theoretically, its board should not even be changed if the government is changed, because financial and national currency stability and inflation depend on it. “The National Bank should be beyond politics, as prescribed by law in a law-governed state,” Bogdankevich said.
He calls the appointment of the interim administration to Belgazprombank “arbitrariness on the part of the Belarusian authorities.” External administration may be advisable in case of bankruptcy or insolvency of a bank, or there are particular problems with its operation. “But the board was working well; the National Bank conducted annual audits at all banks, including Belgazprombank. Independent audit firms also conducted inspections. Belgazprombank is a private bank, not a state one. Owners decide how to utilize profits,” said the expert.
The bank’s supervisory board includes Belarusian officials (former Prime Minister Andrei Kobyakov and business school head Pavel Daneyko). “How this takeover is supposed to improve the investment climate?” said the ex-head of the National Bank.
Bogdankevich considers statements on Belgazprombank far-fetched and doubts that gross tax evasion may be detected in one day. He is amused that the bank is accused of legal purchases of paintings that were brought into the country and exhibited as a corporate collection, although this money could be used to pay dividends. “What is so bad that he bought paintings for Belarus? This [accusations] is a show for the common people. They found 4 million dollars at the bank. But where to find it, if not at a bank? Banks are established to store money,” the expert said, “This is one of the largest banks. Yes, it is a foreign bank, but it operates in Belarus, aiding by the laws of Belarus, and all resources are used for the benefit of Belarus.”
Belgazprombank OJSC was established in 1990 as an authorized bank of Gazprom Group in Belarus. Russian Gazprom PJSC and Gazprombank JSC own 49.66% stake in Belgazprombank; Gazprom Transgaz Belarus – 0.49%; the Republic of Belarus represented by the Ministry of Energy of Belarus – 0.18%. . Belgazprombank belongs to Tier I Group. End