Business news

Joint effort expected to increase resources of Belarusian-Chinese investment fund up to $50m

MINSK, 21 May (BelTA) – Resources of the Belarusian-Chinese investment fund may be increased up to $50 million, BelTA learned from the latest interview of Ambassador of China to Belarus Cui Qiming with the TV channel Belarus One.

The diplomat said: “We are happy that the Belarus president has signed the decree on setting up the Chinese-Belarusian investment fund. I am convinced that we will truly be able to increase resources of this fund up to $50 million through joint efforts. The specific projects the fund will finance are being discussed now. They will serve the common cause of harmonious development.”

BelTA reported earlier that Belarus president decree No.163 stipulates principles for creating and operating the investment fund, which will be founded by the Chinese company CITIC Construction (60%) and Belarusbank (40%). The charter capital will equal $1 million.

The fund will focus on investing in Belarusian investment projects in exchange for shares or bonds of companies. The fund is expected to operate for ten years. Money will be raised by floating proprietary bonds and shares on foreign and domestic markets. The total volume of investments in the first two years since the fund’s establishment is supposed to reach $50 million.

In order to ensure the flow of capital into Belarus and enable favorable terms the decree provides for a number of tax incentives and preferences with regard to currency regulations and trade in securities.

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