Belarus to develop competitive financial market

Belarus has plans to develop a competitive financial market capable of meeting the needs of the domestic economy in investment resources, Deputy Prime Minister Sergei Rumas said at the Council of Ministers’ session on the draft social and economic development program for 2011-2015 and the government’s action plan for 2011-2015.

“In this regard we need to develop a legal framework regulating the activity of the exchange and depositary systems, insurance companies, debt recovery, leasing, investment and managing companies,” the Vice Premier said.

He also stressed the necessity to create a competitive environment on the insurance market by means of ensuring equal rights for companies of all forms of ownership.

The country is expected to shift to the market price formation in the agro-industrial sector within the next five years.

Another challenge facing the government is bringing Belarus into the higher group of Country Risk Classification of the Organization for Economic Cooperation and Development (OECD), Sergei Rumas said.

“Working to improve the positions in the internationally recognized ratings, we thereby create the necessary conditions for increasing the share of small and medium-sized business in GDP by no less than 30% by the end of 2015 and for attracting a substantial inflow of foreign direct investment in the economy without direct interference of the government, i.e. solely through investments,” Sergei Rumas believes. He added that there are plans to allow business entities to self-select the forms and systems of remuneration of labor taking into account the contribution of each employee and the financial capacity of enterprises. New elements of the social package including option incentive schemes will be introduced for managers and skilled workers.

Streamlining the legislation will become the basis for sustained economic growth and boosting GDP 1.6-1.7 times by 2015 as against 2010. To this end, annual GDP growth in the current five-year period should reach 10-11%, which is a quarter higher than its average annual growth rate in the first decade of the 21st century. The target is reachable if we manage to ensure a rapid transition of the national economy onto an innovative path of development, the Deputy Prime Minister said.

According to