Will Belarusians sell their shares?

Belarus is drafting a list of enterprises where the sale of shares will be forbidden, despite the president’s decree. Under the edict, effective from June 17, 2008 Belarusians will be allowed to sell the shares of enterprises which they received during privatization. The list of “untouchables” is still in the process of development, but Hanna Karnyaevich from the State Property Fund says the shares of strategic petrochemical companies will definitely be restricted.

“This year, restrictions are lifted for the enterprises where the state’s share is 75 percent or more. In 2009, restrictions will be lifted for the enterprises with the state’s share of 50 percent or more. On January 1, 2011, the shares of all companies, apart from strategic enterprises, will be free for sale. The shares of all petrochemical enterprises will be restricted for sale”, she said.

Shareholders of the dairy in Shklou, including Halina Lukashenka, received good dividends this year: Br1000 per share. Therefore, it is not clear yet if shareholders will want to sell their property, according to Alena Palankova, the dairy’s chief accountant.

“We have paid out good dividends – Br1000 per share. I don’t know if people will choose to sell their shares…”

The state owns 51 percent of shares in the Shklou dairy. We will see next year if shareholders will dash to sell their wealth.

Hanna Karnyaevich hopes that people will not opt for parting with their shares. Those who will decide to sell their assets will probably need to get quick cash in order to buy medicines.

However, economist Leanid Zlotnikau thinks that since transactions will be carried out at the stock exchange, old women who need money for medicines will hardly look for brokers who have to be paid.

“There are difficulties in this regard. The sale will be centralized at the stock exchange through brokers. Therefore, old women who need money for medicines will hardly be selling”, Zlotnikau says.

Hanna Karnyaevich hopes that the sale of shares will boost the securities market, create competition and financial inflows into economy. At some enterprises, shares can be sold for $50 apiece.

However, Leanid Zlotnikau maintains that there will be no significant changes. Belarus can’t improve its World Bank’s rating only thank to one president’s decree.

But if securities market development turns out to be successful, the sale of the shares of state-owned enterprises will not be halted, according to Hanna Karnyaevich.



Photo: photo.bymedia.net