Decree No 75 provides additional opportunities for regions to raise foreign investment

Decree No 75 “On external borrowings of local government and self-government bodies” provides additional opportunities for the regions to raise foreign investment, announced the deputy chief of the financial department of the Minsk City Hall Nikolai Dubovik.

He noted that prior to the issuance of the decree it was only the central government bodies who could issue and place bonds in foreign markets. Now such right has been granted to oblast executive committees, Minsk City Hall within the limit of the debt established by the local budget for the relevant financial year. Foreign loans will be channeled into investment projects.

Attracting investment to the regional economy, including FDI on a net basis, is one of the most important tasks in 2011 and five-year period considering large-scale projects that are to be implemented in material production and infrastructure development. The share of the budget should be significantly reduced. Thus there is a need to seek other sources of funding.

“In this regard, decree No 75 is very important. It serves as another mechanism to attract foreign investment,” Nikolai Dubovik said.

According to the economy committee of the Minsk City Hall, Minsk Oblast is already working to attract foreign investment and is the country’s leader in this matter. The oblast has implemented investment projects involving foreign investors, attracted foreign credit lines and tied loans, etc. In 2011, according to the social and economic development forecast, Minsk Oblast is set to raise more than $1 billion in foreign investment.

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