The Process of State Property Selling to Accelerate in Belarus

22.07.2010 09:33
Архив Редакция

After the presidential decree № 367 on the disposal of state property entries into force, the process of state property selling will accelerate in the country. It will be possible thanks to the change of the level of decision-making on the alienation of state property cost up to five thousand basic values, reported to correspondent in State Property Committee.

In Belarus, 14 thousand of unused state property facilities were planned to introduce into economic turnover in the period from 2007 to 2010. As of July 1, there involved about 11.2 thousand facilities, that is more than 80%, informed in the committee.

However, the head of the department of property disposal of Republican property of the SPC, Igor Ladutenko, explained that statistics on sales did not look so optimistic — from five thousand facilities there sold about 3.2 thousand, or about 64%.

In order to enhance the process of state property selling there was developed the decree № 367 «On making amendments and additions to some decrees of the President of the Republic of Belarus on disposal of state property.» As Telegraf previously reported, this decree was signed by the head of state July 19. The decree enters into force three months after its publication.

According to Igor Ladutenko, the decree №367 contains several important innovations. Firstly, the decision to sale facilities cost up to five thousand basic values will be coordinated by the State Property Committee, but not by the Council of Ministers, as it was before.

«Today, in accordance with the legislation, the disposal of state property cost up to ten thousand basic values is realized by endorsement with the Council of Ministers, that is to take decision it is necessary to have the government decree», Igor Ladutenko explains. «We have analyzed how the facilities, with taken decision on disposal, are classified depending on the value. It turned out that the facilities, cost up to five thousand basic values, make about 80% of the total amount. The SPC has proposed such a rule to simplify and accelerate decision-making procedures, and as a result, involvement of unused objects into commercial turnover».

After the entry into force of the decree № 367, the decision on such objects disposal will be taken by the relevant ministry, concerns, state administration bodies in coordination with the State Property Committee. «In this case, there changes the level of decision making in terms of harmonization», Igor Ladutenko stresses.

According to the representative of the State Property Committee, this measure should help to reduce the time, required to make decision on the sale. At the moment, in connection with the need of numerous endorsements, decision making process to engage state property in commercial turnover extends over two to four months. «With endorsement on the draft in the State Property Committee there will not be any delays», Igor Ladutenko assured.

The decree № 367 provides the possibility of installment when paying for the purchased property. Previously used legislation did not permit an investor to pay for purchased facility in installments. «The decree № 367 established the rule under which the president may decide to grant installments to pay for facilities, which price is high enough — more than ten thousand basic values, in other words, for important facilities», Igor Ladutenko underlines. «There are facilities, investors were to buy, but due to the high cost they could not pay the whole amount at once. Using installments, we would sell some part of unused state property. We believe that the adoption of this rule will help to increase sales».

The decree № 367 has also changed the terms of the lease of premises, disposed by administrations of free economic zones. In accordance with current legislation, FEZ administration could lease the property, given under their operational management, only to the residents of the FEZ. After the entry into force of the decree № 367, the property can be rented by the FEZ non-residents. «This rule is provided on the proposal of FEZ administrations», Igor Ladutenko said. «There is property, not in demand of residents, but there are interested from non-residents to rent it. This norm, in our view, would involve unused property in turnover».