Identifier
Created
Classification
Origin
08VILNIUS968
2008-11-14 15:41:00
UNCLASSIFIED
Embassy Vilnius
Cable title:
BELARUS WEEKLY POL/ECON REPORT - November 14, 2008
how-toVZCZCXRO1313 RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVL #0968/01 3191541 ZNR UUUUU ZZH R 141541Z NOV 08 FM AMEMBASSY VILNIUS TO RUEHC/SECSTATE WASHDC 3071 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 VILNIUS 000968
AMEMBASSY MINSK SENDS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - November 14, 2008
UNCLAS SECTION 01 OF 02 VILNIUS 000968
AMEMBASSY MINSK SENDS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - November 14, 2008
1. The following are brief items of interest compiled by Embassy
Minsk.
TABLE OF CONTENTS
Civil Society
--------------
- Kurapaty Vandals Face Criminal Charges (para. 2)
- Malady Front Members Sentenced to Jail (para. 3)
- Catholics Continue Fasting to Return Former Monastery (para. 4)
- Entrepreneurs Leader Warned (para. 5)
- Regional Independent Newspaper Warned (para. 6)
Domestic Economy
--------------
- National Bank Raises Refinancing Rate to 11 Percent
(para. 7)
- Belarus' Reserves Decreased Through October (para. 8)
- Lower Gasoline and Diesel Prices Deemed "Inexpedient" (para. 9)
- Russia and Belarus to Sign USD 2 Billion Loan Agreement by the End
of November (para. 10)
- National Bank to Ensure Fair Treatment of Customers by Commercial
Banks (para. 11)
Quote of the Week (para. 12)
--------------
--------------
Civil Society
--------------
2. Kurapaty Vandals Face Criminal Charges
On November 11, police opened a criminal case against the two
vandals detained by Conservative Christian Party members at Kurapaty
on November 1. The vandals face heavy fines or jail sentences of up
to three years. Prominent civil society representatives expressed
hope that prosecution of the vandals would discourage further such
incidents and that they would be "justly" convicted.
3. Malady Front Members Sentenced to Jail
On November 10, a Minsk district court sentenced five MF activists
to three days in jail for violating regulations governing mass
events and holding an unauthorized rally. All five were released
after the proceedings, as they had been held awaiting trial since
their arrest on November 7 for demonstrating against communism in
front of the BKGB headquarters in downtown Minsk.
4. Catholics Continue Fasting to Return Former Monastery
Approximately seventy St. Joseph Roman Catholic community members
and their supporters continue to fast and pray for the return of
former Bernardine monastery buildings in central Minsk. A community
representative told the media on November 10 that the fasting
believers had no health problems and were regularly seen by doctors.
They had committed to abstaining from food until Minsk city
authorities drop their plans to convert the buildings into an
entertainment center and return them to the Catholics.
5. Entrepreneurs Leader Warned
The Borisov prosecutor's office warned the leader of the For Free
Development of Entrepreneurship movement, Viktor Gorbachyov, on
November 10, threatening him with administrative and criminal
charges for acting on behalf of an unregistered organization and
allegedly calling for unsanctioned demonstrations. The warnings
stemmed from Gorbachyov's interviews with online media in which he
voiced concerns over increased impediments to small business
development in Belarus. He linked the pressure by law enforcers
with the protests announced by entrepreneurs to be held in early
December. Gorbachyov noted that he will now be "more careful" in
making such statements.
6. Regional Independent Newspaper Warned
The Borisov-based independent newspaper Borisovskie Novosti received
a warning from the Information Ministry on November 11. The letter,
signed by Deputy Minister Liliya Ananich on November 4, stated that
the Central Election Commission sent a complaint to the Ministry
about a newspaper article that allegedly contained "inaccurate"
information about violations during the parliamentary elections.
--------------
Domestic Economy
--------------
7. National Bank Raises Refinancing Rate to 11 Percent
VILNIUS 00000968 002 OF 002
According to the press service of Belarus' National Bank, the
refinancing rate was raised from 10.75 to 11 percent from November
12. The Bank plans to raise it further later this year to match the
projected inflation rate of 14 percent. The National Bank says it
wants more money in savings accounts in Belarusian banks in the
hopes that this will help secure a sufficient money supply from
which to issue loans to businesses and individuals. Currently,
interest on deposits and loans are 11-14 percent and 14-17 percent,
respectively.
8. Belarus' Reserves Decreased Through October
According to press reports, Belarus' hard currency, gold and
precious stones reserves fell as of November 1 by more than 3
percent both by local and International Monetary Fund (IMF)
standards to USD 4.8 billion and USD 4 billion, respectively. In
2007, the country saw a three-fold increase in reserves and had
planned to secure USD 5.5 billion by the end of this year and USD 10
billion by 2011.
9. Lower Gasoline and Diesel Prices Deemed "Inexpedient"
An unnamed GOB source told Prime-Tass news agency on November 10
that experts from major governmental agencies reviewed high gasoline
and diesel prices on the domestic market and decided to maintain
their current level. They believe it would be "inexpedient" to
lower them in view of falling world oil prices because this would
require the GOB to pay higher subsidies to oil refineries.
10. Russia and Belarus to Sign USD 2 Billion Loan Agreement
Speaking to Prime-Tass news service on November 11, Russian Embassy
Economic Counselor Andrei Kuznetsov reiterated that Russia and
Belarus will sign USD 2 billion loan agreement by the end of
November. The parties will also sign a Memorandum laying out a plan
of joint economic activities, including methods and peculiarities of
mutual payments. The first part of the loan, USD 1 billion, should
be issued in November, while the remaining part will be issued in
the first quarter of 2009.
11. National Bank to Ensure Fair Treatment of Customers by
Commercial Banks
The head of the National Bank Monitoring Section Sergei Dubkov told
an international conference in Minsk on November 12 that the Bank
would oblige all commercial banks to disclose all information
related to interest rates and fees on all issued loans starting on
January 1, 2009. The decision is intended to help secure fair and
transparent services to customers.
--------------
Quote of the Week
--------------
12. In an interview with the Wall Street Journal on November 11,
commenting on U.S.-Belarusian relations, President Lukashenka said:
Everything depends on the U.S. If AMERICA is interested in
developing our relations without putting up any additional barriers
or preliminary conditions, we will make a serious step forward in
this regard, and the Americans will be happy about their cooperation
with Belarus . . . I believe the Americans realized that Belarus is
a key country in Europe with which they need to cooperate."
MILLER
CLOUD
AMEMBASSY MINSK SENDS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - November 14, 2008
1. The following are brief items of interest compiled by Embassy
Minsk.
TABLE OF CONTENTS
Civil Society
--------------
- Kurapaty Vandals Face Criminal Charges (para. 2)
- Malady Front Members Sentenced to Jail (para. 3)
- Catholics Continue Fasting to Return Former Monastery (para. 4)
- Entrepreneurs Leader Warned (para. 5)
- Regional Independent Newspaper Warned (para. 6)
Domestic Economy
--------------
- National Bank Raises Refinancing Rate to 11 Percent
(para. 7)
- Belarus' Reserves Decreased Through October (para. 8)
- Lower Gasoline and Diesel Prices Deemed "Inexpedient" (para. 9)
- Russia and Belarus to Sign USD 2 Billion Loan Agreement by the End
of November (para. 10)
- National Bank to Ensure Fair Treatment of Customers by Commercial
Banks (para. 11)
Quote of the Week (para. 12)
--------------
--------------
Civil Society
--------------
2. Kurapaty Vandals Face Criminal Charges
On November 11, police opened a criminal case against the two
vandals detained by Conservative Christian Party members at Kurapaty
on November 1. The vandals face heavy fines or jail sentences of up
to three years. Prominent civil society representatives expressed
hope that prosecution of the vandals would discourage further such
incidents and that they would be "justly" convicted.
3. Malady Front Members Sentenced to Jail
On November 10, a Minsk district court sentenced five MF activists
to three days in jail for violating regulations governing mass
events and holding an unauthorized rally. All five were released
after the proceedings, as they had been held awaiting trial since
their arrest on November 7 for demonstrating against communism in
front of the BKGB headquarters in downtown Minsk.
4. Catholics Continue Fasting to Return Former Monastery
Approximately seventy St. Joseph Roman Catholic community members
and their supporters continue to fast and pray for the return of
former Bernardine monastery buildings in central Minsk. A community
representative told the media on November 10 that the fasting
believers had no health problems and were regularly seen by doctors.
They had committed to abstaining from food until Minsk city
authorities drop their plans to convert the buildings into an
entertainment center and return them to the Catholics.
5. Entrepreneurs Leader Warned
The Borisov prosecutor's office warned the leader of the For Free
Development of Entrepreneurship movement, Viktor Gorbachyov, on
November 10, threatening him with administrative and criminal
charges for acting on behalf of an unregistered organization and
allegedly calling for unsanctioned demonstrations. The warnings
stemmed from Gorbachyov's interviews with online media in which he
voiced concerns over increased impediments to small business
development in Belarus. He linked the pressure by law enforcers
with the protests announced by entrepreneurs to be held in early
December. Gorbachyov noted that he will now be "more careful" in
making such statements.
6. Regional Independent Newspaper Warned
The Borisov-based independent newspaper Borisovskie Novosti received
a warning from the Information Ministry on November 11. The letter,
signed by Deputy Minister Liliya Ananich on November 4, stated that
the Central Election Commission sent a complaint to the Ministry
about a newspaper article that allegedly contained "inaccurate"
information about violations during the parliamentary elections.
--------------
Domestic Economy
--------------
7. National Bank Raises Refinancing Rate to 11 Percent
VILNIUS 00000968 002 OF 002
According to the press service of Belarus' National Bank, the
refinancing rate was raised from 10.75 to 11 percent from November
12. The Bank plans to raise it further later this year to match the
projected inflation rate of 14 percent. The National Bank says it
wants more money in savings accounts in Belarusian banks in the
hopes that this will help secure a sufficient money supply from
which to issue loans to businesses and individuals. Currently,
interest on deposits and loans are 11-14 percent and 14-17 percent,
respectively.
8. Belarus' Reserves Decreased Through October
According to press reports, Belarus' hard currency, gold and
precious stones reserves fell as of November 1 by more than 3
percent both by local and International Monetary Fund (IMF)
standards to USD 4.8 billion and USD 4 billion, respectively. In
2007, the country saw a three-fold increase in reserves and had
planned to secure USD 5.5 billion by the end of this year and USD 10
billion by 2011.
9. Lower Gasoline and Diesel Prices Deemed "Inexpedient"
An unnamed GOB source told Prime-Tass news agency on November 10
that experts from major governmental agencies reviewed high gasoline
and diesel prices on the domestic market and decided to maintain
their current level. They believe it would be "inexpedient" to
lower them in view of falling world oil prices because this would
require the GOB to pay higher subsidies to oil refineries.
10. Russia and Belarus to Sign USD 2 Billion Loan Agreement
Speaking to Prime-Tass news service on November 11, Russian Embassy
Economic Counselor Andrei Kuznetsov reiterated that Russia and
Belarus will sign USD 2 billion loan agreement by the end of
November. The parties will also sign a Memorandum laying out a plan
of joint economic activities, including methods and peculiarities of
mutual payments. The first part of the loan, USD 1 billion, should
be issued in November, while the remaining part will be issued in
the first quarter of 2009.
11. National Bank to Ensure Fair Treatment of Customers by
Commercial Banks
The head of the National Bank Monitoring Section Sergei Dubkov told
an international conference in Minsk on November 12 that the Bank
would oblige all commercial banks to disclose all information
related to interest rates and fees on all issued loans starting on
January 1, 2009. The decision is intended to help secure fair and
transparent services to customers.
--------------
Quote of the Week
--------------
12. In an interview with the Wall Street Journal on November 11,
commenting on U.S.-Belarusian relations, President Lukashenka said:
Everything depends on the U.S. If AMERICA is interested in
developing our relations without putting up any additional barriers
or preliminary conditions, we will make a serious step forward in
this regard, and the Americans will be happy about their cooperation
with Belarus . . . I believe the Americans realized that Belarus is
a key country in Europe with which they need to cooperate."
MILLER
CLOUD