Creating liquidity in the government bond market in Belarus: what potential for ‘market makers’?(more…)
Designing SME support programs: International experience and implications for Belarus
To date, SME support in Belarus has mainly consisted of concessional loans. The Belarusian government now wants to put SME supporton a broader footing and, above all, to include non-financial support instruments such as training and advisory services in its range of support offers.
Since the reorganization of SME support is beginning from scratch, Belarus has the opportunity to take account of international experienceand lessons learned.(more…)
The concept of entrepreneurship in the regulative frameworks of Germany and Belarus
Belarus has recently adopted some reforms that simplify and liberalize the registration of a number of economic activities.
We compare and assess the recent reforms with the concept of entrepreneurship in the German law with a special focus on
- Permission and registration requirements and
- The legal status of natural persons, who carry out economic activities.
Improving the Funding of Export Transactions
Export Promotion is a proven and valuable instrument for strengthening a Nation’s export performance. Through export promotion national companies gain experience in tackling international markets, they can improve their international competitiveness, attract export finance and get protection against the risk of non-payment of foreign contract partners. However, the design of an export promotion scheme needs to be done with caution, because many domestic and international aspects must be taken into consideration. For Belarus, not (yet) being a WTO member, the WTO Agreement on Subsidies and Countervailing Measures (ASCM) nevertheless should be an important benchmark concerning the ultimate borderline for state supported export finance and export credit insurance. Not only internationally, but also domestically aspects of protection of competition and avoidance of corruption and unfair business practices need to be considered.(more…)
A regulatory framework for venture capital funds in Belarus(more…)
Diversification of Belarusian Exports: The Potential of the DCFTA-Countries Ukraine, Moldova and Georgia
Belarus is an open economy, with exports running at above 50% of GDP. The Russian Federation accounts for about half of Belarus’ total exports of goods. A diversification of Belarus’ exports to other markets would be a well-founded policy goal, increasing export sales and reducing the vulnerability to external shocks.(more…)
Competition law enforcement: German experience and relevance for Belarus
Understanding the principles, the structure and organizational design of competition law enforcement in Germany could be of interest for Belarus as it is currently drafting its competition development program.(more…)
Recommendations for reforming the SME Definition in Belarus
The classification of small and medium-sized enterprises (SME) in Belarus is inappropriate. Consequently, the official statistical research and publications do not provide reliable data for policy makers, which hinders the development of efficient SME policy. We therefore recommend reforming the legislation that stipulates the SME definition.(more…)
Resolving Non-Performing Loans: Selected International Experience
Belarus is faced with a rapidly rising level of non-performing loans (NPLs) in its banking sector. This is not a unique feature; many countries in the world have experienced similar developments as NPL cycles are quite a regular feature of many financial systems around the globe. However, international experience also shows that high levels of NPLs pose a danger to financial and economic stability, and thus need to be comprehensively addressed by policymakers. A bank’s high NPL stock depresses its earnings as it generates less interest income, requires loan-loss recognition and increases operating costs related to NPLs’ management and work-out. Operating costs could be significant as the relevant skills are in short supply within the banking industry. Lack of profitability reduces the capital generated within banks, raises funding costs, and depresses credit growth. Credit will be constrained by all banks, impacting both healthy and distressed private sector borrowers.(more…)