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Opinions & Interviews

13 Feb 2013

PM wants investment projects in Belarus to pay back in 3 to 5 years

PM wants investment projects in Belarus to pay back in 3 to 5 years

MINSK, 13 February (BelTA) – Majority of the investment projects in Belarus need to pay back in 3 to 5 years, Prime Minister Mikhail Myasnikovich said at a session of the Council of Ministers of Belarus, BelTA has learned.

Speaking about the efficiency of capital investments, the Prime Minister noted that $31.5 billion has been invested in industry over the past seven years. “In principle, investments should be heavier.  But today the problem is that these investments have yielded only $19.2 billion in the growth of value added for the period under review. Today, when the country began a mass upgrade, the issues of efficiency of modernization should be at the forefront. We do not need modernization for the sake of modernization. Each invested ruble must give 2 to 3 rubles in value added. The return on the bulk of the projects should be 3 to 5 years at the most,” the Prime minister stressed.

Modernization should pursue specific objectives, said Mikhail Myasnikovich. First, this is integration with the world's leading companies. Second, development of the private and private-public sector. Third is strict accountability of managerial staff. Fourth, the state support for projects. Fifth is the encouragement of managerial staff, heads of regional and national bodies who are actively involved in modernization projects.

Modernization is impossible without investment and innovations, said the Prime Minister. Managers at all levels need to pay special attention to innovative projects, which are aimed at a new quality of growth, a new economy, and for which more Br3 trillion has been earmarked from the innovation funds, said Mikhail Myasnikovich. All this is a kind of professional competence test for ministers and heads of industrial concerns. Whether leaders of industries and regions are capable of ambitious projects, projects of the future,” said the Prime Minister. This issue will be dealt separately by the Government

“Ministers, heads of the regions and Minsk do not work hard to attract favorable loans,” said Mikhail Myasnikovich. The Prime Minister ordered to do an audit of Chinese credit lines. The People's Republic of China has allocated $12 billion in credit facilities. At the same time, there are few effective projects. The National Bank has removed all restrictions on corporate lending in foreign currency for upgrade projects. The margin recommended by the National Bank margin is 3%.

“In other words, there is money available, but there are no projects. To be precise, there are projects but the executives do not want to participate in the investment process. Why? Because they do not want to take risks, to take responsibility,” said Mikhail Myasnikovich.

 

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