Why Investors Do Not Believe Lukashenka?

The authorities imitate teeming activity.

Last week, the State Property Committee published a list of enterprises, where part of the state share is to be privatized in 2019. There are 23 open joint-stock companies in the list, among which there are small enterprises and industry flagships, Your Country’s Tomorrow writes.

The process is more important than the result

– It’s not for the first time that the state makes lists of enterprises that it would like to sell, but it doesn’t bring any results from year to year, – economist Leu Marholin reminds.

The expert is sure that this time it will happen again. Indeed, despite the deterioration of the economic situation at these enterprises, the fall in revenues and sales, as well as the growth of losses, the state has not changed prices and investment requirements for buyers. Homselmash shares, for example, are offered to a potential investor with the condition to invest at least $ 500 million.

– These are totally inadequate requirements, especially considering the fact that the state is going to retain control over the enterprise, – Leu Marholin is convinced.

– There is the International Monetary Fund and other international lenders, who require the state to get rid of distressed assets and privatize unprofitable enterprises. The drawing up of such lists gives reason to say – we are ready to sell as many as 23 enterprises, including very large factories, but there are no buyers. There is an imitation of teeming activity that allows maintaining the status quo, – Leu Marholin says.

–The state has less money to subsidize unprofitable enterprises from year to year, and they do not show any tendency to recovery. In a few years, these enterprises will simply die a natural death, – Leu Marholin says.