During the meeting to hear out the report
MINSK, 29 February (BelTA) – The preferential taxation of the corporate bond yield will be prolonged for 2016 and 2017. Belarus President Alexander Lukashenko made this decision when hearing out the report on the draft decrees concerning the development of the financial market on 29 February, BelTA has learned.
When discussing the draft decree, the head of state demanded to justify the need to prolong the tax preferences. The President wondered whether this move could result in the decrease in budget revenues. The head of state asked what the real value of the matter in dispute was, whether these funds will be handed over to enterprises, whether they will help improve the situation and raise the tax proceeds.
Corporate bonds can be issued by enterprises and banks to raise funds. The preferential regime was introduced in 2008 and proved efficient. The enterprises raise funds for development themselves, not with the help of banks. It is cheaper for them. As a result, corporate bonds are an alternative to bank loans.
Apart from that, the President was informed about the draft decree concerning the issue and circulation of shares using foreign depositary receipts. The head of state urged to evaluate possible risks and wanted to know whether this measure will benefit enterprises and the state, whether the inflow of foreign investments will increase.
Alexander Lukashenko was informed that the draft decree enables enterprises to float up to 25% of shares using foreign depositary receipts. As a rule, such depositary receipts are issued by large banks and companies. Buying the shares of an enterprise, they place them on foreign financial markets.
Therefore, the draft decree aims to raise the inflow of foreign investments and promote the shares of Belarusian joint-stock companies on the international capital markets. After the discussion the President approved of the draft decree.
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