MINSK, 16 November (BelTA) - In a new episode of BelTA’s Nation Speaks project Dmitry Klimenkov, Head of the Investment and Construction Directorate of the Economy Ministry, spoke about the efforts to improve Belarusian regions.
According to Dmitry Klimenkov, work is underway to approve target plans for the next year regarding which credit products will allow businesses to receive soft loans. “The emphasis here is again on the Regional Initiative, tourism, and on large industrial enterprises that are technologically self-sufficient and engaged in import substitution. The state is striving to create the best conditions for such projects. Interest rates on loans for regional projects may be reduced further. This is the issue we are currently working on. Primarily, this will be organized through the Development Bank,” he emphasized.
Regarding agricultural districts and rural development, while the general interest rate on loans is 7-8%, for agricultural districts it is reduced to 6.5% or even lower. “This is one of the direct incentives introduced this year under the Regional Initiative. The main pool here consists of the Development Bank, Belarusbank, and Belagroprombank. Other banks can also join if they have available resources. They are ready to provide loans on the same terms; it all depends on their resource base,” he specified.
The second method of supporting the rural areas is the mechanism of budget transfers. An enterprise or organization that has built a plant and incurred capital costs is entitled to partial reimbursement of these costs from the budget. Reimbursement occurs partially upon the facility's commissioning and partially upon reaching its designed capacity. “For agricultural districts, the maximum amount of such transfers is set at 35%. In more industrialized regions, this amount is lower. The state takes on a portion of the expenses, thus creating more favorable support measures for less developed areas,” Dmitry Klimenkov explained.
Speaking about the further general development of the regions, the specialist stressed that local authorities have a clear view of what people need. “For example, a new school is needed, or an existing one has become too small due to population growth. Or it is necessary to build a polyclinic, a road, a bridge - everything stems from the real needs of the residents. The quality of infrastructure depends precisely on this,” he noted. “In the commercial sector, by law, a number of projects are subject to public discussion. If a need and demand for certain services or enterprises arises, sooner or later a market participant will organize this supply in response to public demand.”
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