News & Events in Belarus

“Just like in other areas of work, the head of state pointed out to the need to be realistic, not to create unnecessary paperwork, and solve issues using the existing authorities,” Andrei Gayev said. “It is essential to regulate the following issue: the Civil Code restricts the transfer of assets of unitary enterprises in asset management. Therefore, the head of state gave an instruction to prepare a key document permitting the transfer of such enterprises in asset management.”

The chairman of the State Property Committee remarked that this mechanism is one of the ways to raise the efficiency of enterprises. It means that a legal body is appointed to manage the assets for a certain period of time. “A legal body appointed to manage the asset complex will be able to expand production at the existing premises. The enterprise subject to asset management will retain its debts if there are any. But the enterprise will be able to use raw materials and supplies, a dealer network of the legal body in charge of it,” Andrei Gayev explained.

As a result, a positive economic and social effect emerges for both enterprises. An asset manager is responsible for turning the asset complex into a profitable enterprise. A decision on the sale of the asset complex will be made depending on the results of asset management.

Andrei Gayev said that in theory a corresponding mechanism can be applied to more than 2,000 enterprises whose assets are in the republican or municipal ownership.

The government and local authorities will meticulously select the legal bodies which will be able to serve as asset managers. It is planned that this process will be based on competitive principles.

“The head of state urged to remove all legislative barriers if there are any. All agencies should do their job without excessive paperwork,” the chairman of the State Property Committee said.

Andrei Gayev mentioned the positive experience of using an asset management mechanism in relation to joint-stock companies. About two years ago OAO 8 Marta became an asset manager of the stock of shares of OAO Rechitsa Textile. Two years later the warehouse stocks fell four times, the output per employee more than doubled, the total output went up more than 30%. In accordance with the business plan, the enterprise will earn the first profit at the end of 2017.

As a result, OAO 8 Marta got a chance to expand its production at these premises and did not take any burdens which had been accumulated at OAO Rechitsa Textile for years. The latter enterprise, in turn, got an opportunity to execute the orders for OAO 8 Marta. OAO Rechitsa Textile also got a chance to sell its products via the dealer network of OAO 8 Marta,” the chairman of the State Property Committee said.

“This is a good example for the asset managers of unitary enterprises,” he added.

BelTA has learned after the session that the innovations will help with the financial restructuring of enterprises and will help attract honest investors. The president instructed to find an optimal solution to the abovementioned issues without red tape and excessive paperwork.