BELARUS NEWS AND ANALYSIS

DATE:

30/10/2008

Belarus leader wants speedy economic liberalisation

MINSK, Oct 30 (Reuters) - Belarus's government should not be afraid to liberalise the economy in the face of a global financial crisis, President Alexander Lukashenko said on Thursday.

Lukashenko, in office since 1994, has maintained a largely Soviet-style economy, but after rowing with Russia over gas prices last year, he has sought better ties with the West.

Minsk is seeking a $2 billion loan from the International Monetary Fund in what officials have described as a precautionary measure in case the global crisis hits the country. "We should make use of the situation and take decisive steps in the direction of liberalising the economy and the lives of people," Lukashenko told a government meeting, state-run news agencies reported.

"We should do this by Jan. 1 -- do that of which we have always been afraid of," he said, without giving specifics.

Belarus's largest state bank, Belarusbank, said on Thursday it was postponing, at least until the New Year, plans to issue a Eurobond in view of the poor outlook on markets.

"All plans for borrowing remain in force, but in view of the instability on financial markets, now ballooned into a financial crisis, our consultants recommend a postponement until at least early next year," the banks's deputy chief executive, Vladimir Novik, told reporters.

Belarus has introduced reforms to open up the economy, including getting rid of a state golden share rule, simplifying the tax system and offering some state assets for sale.

Telekom Austria (TELA.VI: Quote, Profile, Research, Stock Buzz) and Turkcell (TCELL.IS: Quote, Profile, Research, Stock Buzz) spent $1 billion and $500 billion respectively for two Belarussian telecom operators, while the authorities hope Commerzbank (CBKG.DE: Quote, Profile, Research, Stock Buzz) will acquire a controlling stake in one of its banks.

But as the global credit crunch spread across regions and markets, a deputy economy minister has said the privatisation programme of some 140 state enterprises will be postponed. (Reporting by Andrei Makhovsky; writing by Sabina Zawadzki, editing by Mike Peacock)

Source:

http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSLU74226520081030

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