Page 23 - BELRptApr19

5.3 FDI
Belarus -FDI 2010 2011 2012 2013 2014 2015 2016
FDI Net (BoP) -1,343 -3,877 -1,308 -1,984 -1,789 -1,546 -1,124
FDI net inflows (BoP)
1,393 4,002 1,464 2,246 1,862 1,652 1,247
FDI net inflows (% of GDP) 2.43 6.48 2.23 2.97 2.36 2.93 2.63
FDI net outflows (% of GDP) 0.09 0.20 0.24 0.35 0.09 0.19 0.26
Belarus is in top 10 destination for the European Bank for Reconstruction and Development (EBRD) in terms of the amount of investment , EBRD President Suma Chakrabarti told reporters following his meeting with Belarus President Alexander Lukashenko on 4 March.
“Since my first meeting with the Belarusian president in 2015, our investment in the Belarusian economy has increased considerably. Last year the investment hit a record high $400mn. Thus, Belarus made it to the Top 10 countries with the biggest amount of the EBRD investment,” Chakrabarti said.
Since the EBRD began working in Belarus in 1992, the bank has invested over €2.4bn in 115 projects in various branches of the national economy.
In 2018, the EBRD conducted approximately 2/3 of its operations in the private sector, the rest in the public sector. The Bank is set to stick to this ratio in the next five years prioritizing the development of the private sector.
For example, in 2018 the EBRD earmarked the largest municipal loan of €84mn to Minskvodokanal, €5mn to the solid waste management company in Pukhovichi District and Cherven District of Minsk Oblast and also €42mn to complete the Minsk Ring Road 2 renovation project. The Bank signed loan agreements with a number of foreign and domestic companies in the private sector. The Bank allocated €50mn to the manufacturer of particleboard and furniture company IOOO VMG Industry, €20mn to the furniture manufacturer IOOO Mebelain, €20mn to OOO Evrotorg. In 2018, the EBRD bought a stake in the agricultural group Servolux and also issued a €5mn loan to the pharmaceutical company Apteka Group.
The EBRD supported the development of renewable energy in the country, having financed the construction and commissioning of four biogas CHPs in Grodno Oblast and Brest Oblast.
Chakrabarti also confirmed plans to buy a stake in Belinvestbank.
“We have discussed this matter. During our first meeting with the Belarusian president in 2015, the focus was on this project. In my opinion, over the past three to four years we have made significant progress. First of all, Belinvestbank has reported considerable profits for the first time in many years. As the next step, we plan to acquire a stake in the bank within the framework of cooperation between the Belarusian government and the EBRD,” Chakrabarti said, adding the valuation of the bank has yet to be agreed.
“We are waiting for a formal proposal from the EBRD,” the economy minister Dmitry Krutoi said as he answered the question regarding the prospects for the EBRD acquiring a stake in the Belarusian bank.
23 BELARUS Country Report April 2019 www.intellinews.com