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 objective 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 one 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 certain moments. Let's listen to in which ones. Naturally, to protect our economy from the arbitrariness 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 are not selling or transferring 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 go there with pleasure," Alexander Lukashenko noted.
"Therefore, I want to specifically discuss the feasibility of adopting the government's proposals on permits for the sale of property by foreigners," the President said.
As explained by the Minister of Economy, Yuri Chebotar, if a company with foreign capital (from an unfriendly state) now wants to leave the market by selling its asset to Belarus, it will have to pay a duty of at least 25% and then obtain government permission. They do not intend to abandon this approach, but certain adjustments are needed, 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. And if this property eventually transfers to the bank, it must sell it to compensate for its losses from the unpaid loan. However, after selling the property, the bank must pay an additional 25% duty. As a result, all this will sooner or later fall on the shoulders of its clients – ordinary people.
The situation is the same with foreign developers: according to current rules, they can sell housing built for people only upon payment of the duty. But surely the developer will simply compensate for their additional costs by increasing the price per square meter, and in the end, everything will again fall on the shoulders of the buyers.
"If this foreign bank (and it is effectively foreign) plans to operate in Belarus, they must be put on equal terms with our banks," noted Alexander Lukashenko. - And tomorrow this bank will cease its operations..."
"Then the decree rule comes into play, and it can only leave with the government's permission, provided that it pays at least 25%," said the Chairman of the State Control Committee, Vasily Gerasimov, joining the conversation.
Source: belta.by