27 February 2007
Belarusian government set to raise ?1 billion this year with help of Austria's Raiffeisen Zentralbank

The Belarusian government plans to draw up to €1 billion in investments in 2007 with the help of Raiffeisen Zentralbank Osterreich AG (RZB), official information sources said while reporting on Prime Minister Syarhey Sidorski's meeting with Patrick Butler, a member of the RZB Managing Board, in Minsk on February 26.

Good relations connect Raiffeisen Zentralbank and Belarus, Mr. Sidorski was quoted as saying at the meeting.

In 2005, the Austrian bank arranged for Belarus to obtain the first syndicated loan, which helped other banks work more efficiently in this sphere, Mr. Sidorski noted.

Mr. Butler reportedly expressed satisfaction with the bank's presence in Belarus. In January 2003, Raiffeisen Zentralbank acquired 50 percent in Belarus' third largest bank, Priorbank, for €30.6 million, and currently holds a 63.04-percent stake in the bank. "These four years show that the investments in Belarus were quite successful," Mr. Butler noted.

During their meeting, Messrs. Sidorski and Butler reportedly discussed the possibility of cooperation in other areas. In particular, Mr. Sidorski suggested using the potential of Raiffeisen Zentralbank for drawing direct investments from foreign financial institutions.

This €1 billion is supposed to be raised through receiving untied syndicated loans from international funds and specialized institutions, and placing bonds among investors, and to be used for the national economy's needs in general and for increasing the efficiency of Belarusian enterprises in particular, explained Priorbank CEO Syarhey Kastsyuchenka in an interview with the government's BelTA news agency. According to him, the RZB will now raise its presence in Belarus to the level of relations with the Belarusian government. It is expected to sign an agreement with the government to assist in drawing foreign financial resources. The RZB has reportedly offered to represent Belarus in international capital markets as a solid and reliable partner.

Mr. Butler said that Belarus is a borrower that has the smallest foreign debt. "Until recently it were banks that were major investors of Belarus, but now various funds display a rather big interest in Belarus," he was quoted as saying. He noted that the expected rates, conditions and terms would be more attractive than those offered by Belarus earlier.

With a balance sheet totaling €103.2 billion as of June 2006, the RZB is the third largest bank in Austria and one of the country's leading commercial and investment banks. It was founded in 1927 and is headquartered in Vienna. It is the central institution of the Austrian Raiffeisen Banking Group (RBG). The RZB also considers Central and Eastern Europe part of its home market. //BelaPAN