Belarus: A New Country in Eastern Europe
Выдавец: Тэхналогія
Памер: 72с.
Мінск 1994
In Belarus hotels are not classified by stars (♦*, *♦*, *♦♦*) instead there are five categories: highest, first, second, third and fourth. The highest category corresponds to a three-star (♦**) hotel. Unfortunately there are not many such hotels in Belarus, that is why capital investments in hotel service are very profitable as there is great demand in high class hotels as well as in cafes and restaurants.
BANKS
The independent bank system of Belarus came to existence only in 1991 after the Supreme Soviet has adopted the law "On the National Bank of the Republic of Belarus" and the law "On Banks and Banking Activities". According to these laws in Belarus there was established a two-level bank system: the National Bank and commercial banks as well as other credit establishments. The National Bank of Belarus is the central bank and reports only to the Supreme Soviet acting exclusively in the interests of Belarus.
In 1994 in Belarus there were 35 commercial banks. The commercial banks of Belarus have created a public organization "Commercial Banks of Belarus Association" which coordinates their activities, works out their strategy of actions and is engaged in lobbyism of banking laws in the Supreme Soviet.
44
Hotel BELARUS in Minsk
Many commercial banks of Belarus have the correspondents accounts in Western European and American banks, are connected to the
45
SWIFT system which permits to make international transfers very quickly. In 1994 the Commercial Banks Association started to create a centre on credit cards payments. So far using VISA, Eurocard/Mastercard, American Express and other cards one can only withdraw cash in banks as the creation of the cards payments processing centre is only being planned.
The largest commercial banks of Belarus by the size of authorized capital in millions of Belarus roubles by the 1st of January 1994 were:
1. BELAGROPROMBANK 21984.8
2. BELPROMSTROYBANK 12478.4
3. BELARUSBANK 10410.2
4. BELBUSINESSBANK 8305.4
5. BELIN VESTBANK 7020.0
6. PRIORBANK 6907.9
7. DUCAT 3516.2
8. BRESTKOMBANK 2462.2
9. VITKOMBANK 1737.8
10. BELVNESHECONOMBANK 1696.9
In Belarus there start to emerge banks with private capital in authorized capital. Among the commercial banks mentioned above the authorized capital of BELARUSBANK is by 100% formed by the private capitals.
INSURANCE
For the defence of interests of private and artificial persons including foreign ones m Belarus there is a large network of insurance associations and companies. In 1993 the Supreme Soviet of Belarus has adopted the law "On Insurance" which permitted the existence together with state insurance organizations the private and mixed ones. In Belarus there is a voluntary and compulsory insurance which are defined by the law. The compulsory insurance is provided only by the state insurance companies. The insurance fee is 2-7 % of the insurance sum.
Foreign private and artificial persons that invest their capitals in the economy of Republic of Belarus can insure their property interests only
46
in Belarusan insurance companies. In Belarus there may be organized international insurance companies but the share of foreign partners must not exceed 49% of the authorized capital.
The value criteria of insurance companies is defined by the authorized capital, insurance reserves, reserved profits that according to the law should not be less than 15%. By the beginning of 1994 in Belarus there were 77 insurance companies.
The major msurance companies of Belarus by the size of the authorized capital in billion of Belarusan roubles by the beginning of 1994 were:
1. BELGOSSTRAKH
19.0
2. BELINGOSSTRAKH 10.0
3. TASK 3.0
4. BELBRIT 1.6
5. PROMTRANSINVEST 1.3
6. ALVENA 1.3
7. WESTASKO 1.2
8. ELSTRA 1.2
9. BELASKO 1.1
10. BTA
1.0
According to Belarusan laws the insurance companies can insure risks only if the total sum does not exceed ten times their authonzed capital and insurance reserves. This is controlled by the State Insurance Control at the Cabinet of Ministers of Belarus and by the Belarusan Insurance Union.
47
7. The Possibilities Of Business Cooperation
Belarus is not well-known in West European, American and other business circles. This is due to the fact that the former USSR was seen in the world as a unitary super-state that emerged in place of the Russian Empire. It was not customary to speak abroad of the separate Republics that constituted the former Union of Soviet Socialist Republics. Many people in the West still consider the former USSR being only Russia. And this is not accidental as the internal and external policy of the USSR was planned in Moscow. The main governmental and non-govemmental organizations that decided the directions of business cooperation with foreign countries were concentrated in Moscow. There were also all foreign embassies and representatives.
Now economic and political situation on the territory of the former USSR has changed drastically. First, there emerged new states. In Eastern Europe they are: Belarus, Ukraine, Moldova, Lithuania, Latvia, Estonia and Russian Federation. The division of the USSR into several states led to the transformation of unitary economic system into an international one. Between new states there emerged problems that need solving on the interstate level. New states in Eastern Europe are now in the stage of their establishing, so it is difficult to represent themselves in the world yet. This negatively influences the development of business relations of Belarus with other countries, as Belarus has just started to create its diplomacy school, to make its foreign economic policy, to understand its place and role in the world.
Russia is in a better position in the field of international cooperation as it proclaimed itself the legal heir of all the property of the former USSR abroad and refused to share it with any of its former allies. Besides the property abroad Russia got all the diplomatic corps and structures that went into the foreign economic activities.
48
But the business circles of Belarus do not want to wait for the politicians to decide about their place in the world. Belarusan businessmen want to cooperate. Now Belarus according to many experts presents a great interest for local as well as foreign businessmen. This should be known to businessmen and politicians in neighboring as well as in distant countries.
It should be noted that many business circles in Western Europe, America and Asia are attracted, on the one hand, by the political and social stability in Belarus but, on the other hand, they are cautious because of the uncertainty in the direction of economic development. Now in Belarusan economy one can see elements of liberalism as well as strict state planning. This very often leads to sharp economic problems but they are mostly connected with the illness of making of the independent economic policy of Belarus and with the eagerness of Belarusan government to diminish the influence of internal and external economic and political factors on the living standards. Unfortunately the decisions of the Supreme Soviet and the government on prevention of negative tendencies in economy not always lead to positive results. But Belarusan businessmen and politicians are full of optimism and look forward to the fruitful and equal cooperation. If in Western Europe there is a crisis of goods and services overproduction, in Belarus there's a crisis of underproduction.
Lately there appeared signs of some economic stabilization in Belarus. The further improvement of Belarus' economy depends on the development of its business relations with developed countries, on its integration into the world economic system. So far Belarusan economy is greatly oriented to the Russian market and depends greatly on political and economic situation in that country. But on the other hand, West-European and American companies can use the structures of Belarusan business for the cooperation with the other CIS countries.
Belarusan business circles are ready to offer to their foreign partners a number of long-term joint plans. This involves, first of all, investments into Belarusan economy on mutually beneficial conditions, the creation of joint ventures, cooperation with large Belarusan banks, insurance companies, commercial firms, taking part in projects on modernizing of infrastructure and services. For example, some large Belarusan
49
banks and companies, when implementing big projects, are ready to pay 30% interest rate to the Western banks for their credits.
One of the prospective fields without which the international cooperation in Belarus will be hardly possible is the creation of jomt consulting companies on legal, finance and insurance problems. The great need in such companies is felt by local as well as foreign businessmen who have started joint projects in Belarus.
Nowadays in Belarus there are companies and organisations which help the development of international cooperation. One of such organizations is the International Association BELFRANCE, which initiated the making and publishing of this booklet. The main fields of activities of the Association are development of international economic cooperation, preparation of scientific and cultural exchange, making the seminars, presentations, business studies and the publishing activities.
Belarus as a new state in Eastern Europe invites all to cooperation. For those who want to establish business contacts with Belarusan partners we can give an advice to contact the organisations and representatives given at the end of this booklet.
From the point of view of state interests and economic and agricultural specialization the priorities in Belarusan economy are:
banking and insurance;
oil and chemical industries;
energy saving technologies;
infrastructure and services;
computing machinery and its components, materials for electronic industry;
telecommunications equipment;
machinebuilding;
КНІГІ ОНЛАЙН
