BELARUS NEWS AND ANALYSIS

DATE:

17/12/2008

Belarus to recapitalise its four largest banks

MINSK, Dec 17 (Reuters) - Belarus will recapitalise four of its largest banks by $1.4 billion, using budget revenues and through the issue of 10-year domestic bonds, according to a presidential decree published on Wednesday.

The capital of Belarusbank will be increased by 650 billion roubles ($295 million), Belinvestbank by 200 billion roubles and BPS Bank by 200 billion roubles through a 2 trillion rouble debt issue.

This will raise the capital of Belarusbank by 40 percent, while the capital of Belinvestbank and BPS Bank will be doubled.

The government had already announced plans to raise the capital of Belagroprombank by almost a billion dollars -- 950 billion roubles, or half of that, would come from proceeds of the debt issue and the rest from budget resources.

Belarus, whose economy is still largely in state hands, has said before that it is considering selling to foreign investors a stake in Belagroprombank and controlling stakes in Belinvestbank and BPS Bank.

The ex-Soviet state is in talks with the International Monetary Fund on a $2 billion loan, to help defend itself against the impact of the global financial crisis that has taken hold of neighbouring Russia and Ukraine.

(Reporting by Andrei Makhovsky; Editing by Richard Hubbard)

Source:

http://in.reuters.com/article/bankingfinancial-SP/idINLH49033020081217

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