OREANDA-NEWS. September 22, 2008. Previously, the overall amount of contributions by foreign shareholders in the authorized capitals of domestic banks could not exceed 25 % of the aggregate amount of authorized capitals. Now the quota is being raised to 50 % to accommodate more investments in the sector.

Belarusian banks have been among the major recipients of foreign investments in 2007 – 2008. While in the beginning of the current year investments in the banking sector comprised about 10 % of the total amount of foreign investments, on 1 September 2008 these volumes reached 22.2 %.

According to the National Bank, foreign investors are interested both in shareholding in existing banks as well as establishment of new banks. This interest is manifested by several recently accomplished transactions, such as acquisition of Paritetbank by AFK Systema (Russian Federation), acquisition of Lorobank by Home Credit, entry of Russian VTB Bank to the Belarusian market.

Furthermore the National Bank expects establishment of several new banks with foreign capital. Belarusian Government also contemplates privatization of 4 largest government-owned banks — Belarusbank, Belagroprombank, BPS-Bank, and Belinvestbank. Sale of BPS-Bank and Belinvestbank should be accomplished by the end of 2008.

Today, foreign investors hold shares in 23 of 29 Belarusian banks. 9 out of the 29 are fully owned by the foreign investors. At the same time 76 % of bank assets in Belarus belong to the banks controlled by Belarusian government.