The government proposes a more flexible approach to the sale of property by owners from unfriendly countries
The government proposes a more flexible approach to the sale of property by owners from unfriendly countries. Relevant issues were among the topics discussed at a meeting between President of Belarus Alexander Lukashenko and the leadership of the Council of Ministers, BELTA correspondent reports.
A draft decree has been submitted for the head of state's consideration, which proposes a number of innovations in the field of appraisal activities.
"Currently, hundreds of organizations in Belarus have the right to appraise various material assets. Here, as in other areas of the economy, only highly professional experts who can provide quality services should work. Those with a good reputation, whom the state and people can trust with appraisals. Only an objectively conducted appraisal allows for sound management decisions. Especially when it comes to the market value of state (effectively, public) property or future budget revenues," Alexander Lukashenko emphasized.
The President's main requirement for the introduced innovations is transparency and controllability.
"Furthermore. The government proposes to show more flexibility (I don't know how much more we can bend here) in matters of property sales by foreigners from unfriendly countries and to provide for cases when such is possible. Never impossible. But the government finds that what is impossible, is sometimes possible in some moments. Let's listen to in which cases. Naturally, to protect our economy from the lawlessness of the West amid increasing sanctions pressure, we have adopted a number of systemic documents, and today no shareholder or owner with citizenship of an unfriendly country has the right to sell off property without special government permission and a budget contribution, thereby stripping the economy's fixed assets," the head of state recalled.
"We agreed: we will not sell or transfer any property to anyone if, as a result of sanctions or other reasons, foreigners who own property, enterprises, or companies here leave our market. As I said, goodbye – we will sort it out ourselves. And, as McDonald's shows, we have sorted it out perfectly: people happily go there," Alexander Lukashenko noted.
"Therefore, I specifically want to discuss the feasibility of adopting the government's proposed regulations on property sales by foreigners," the President said.
As explained by Minister of Economy Yuri Chebotar, if a company with foreign capital (from an unfriendly state) currently wishes to exit the market by selling its asset in Belarus, it would be required to pay a duty of at least 25% and then obtain government permission. This approach is not being abandoned, but certain adjustments are necessary, as this rule sometimes negatively affects the current operations of organizations in the banking, leasing, and construction sectors.
For example, a bank issues a loan to a citizen secured by real estate. If this property eventually transfers to the bank, it must sell it to compensate for its losses from the unpaid loan. However, upon selling the property, the bank must pay an additional 25% duty. Ultimately, this will, in one way or another, fall on the shoulders of its clients – ordinary people – in the future.
The situation is similar with foreign developers: under current regulations, they can sell housing built for people only upon payment of a duty. But it is likely that the developer will simply offset their additional costs by increasing the price per square meter, and in the end, it will again fall on the buyers.
"If this foreign bank (and it is effectively foreign) plans to operate in Belarus, they must be put on equal footing with our banks," noted Alexander Lukashenko. "And tomorrow this bank will cease its operations…"
"Then the decree's rule comes into effect, and it can only exit with government permission, provided it pays at least 25%," joined the conversation Chairman of the State Control Committee Vasily Gerasimov.
Source: belta.by