Equity Market
Today one can notice a dynamic development of stock market. Formation of its infrastructure is being completed; it includes state regulation system, depositary system, clearing-and-settlement system, exchange trade system, and market activity enforceability.
The legal base which determines conditions of equity market and its participants functioning (the Law on Securities and Stock Exchanges) has been created.
The infrastructure of Belarus’s stock exchange is presented by the following institutions:
- Security Department at the Ministry of Finance of the RB;
- The National Bank of the RB (www.nbrb.by);
- State Property Fund at the Ministry of Economy of the RB;
- National depositary trust company of the Republic of Belarus;
- Belorussian Currency and Stock Exchange (www.bcse.by);
- Belorussian Association of Securities Market Participants.
Fast growth can be observed on state securities market. The range of issued securities is being extended; the new methods of their placement are being applied.
Stock turnover of public securities accounts for more than 90% of total volume of circulating securities.
The Ministry of Finance issues the following public securities on behalf of the Government of the Republic of Belarus:
1. For legal persons:
- government short-term bonds;
- government long-term bonds;
- government bonds denominated in freely convertible exchange;
- bills of exchange of the government of the Republic of Belarus.
2. For natural persons:
- state currency loan bonds of the Republic of Belarus;
- state saving loan bonds of the Republic of Belarus.
State bonds denominated in freely convertible currency are registered public securities which are issued as accounts.
Bonds can be short-term and long-term securities. The above securities are issued with coupon and interest yields and sold by the Ministry of Finance of the Republic of Belarus on a contract basis.
Non-residents are entitled to invest in all types of securities belonging to the Government of the Republic of Belarus.
The ways non-residents of the Republic of Belarus can participate in state bond acquisition:
- purchasing of state bonds denominated in Belarusian roubles at auctions held by the National Bank and Ministry of Finance of the Republic of Belarus;
- purchasing of state bonds denominated both in Belarusian roubles and freely convertible currency on the basis of a contract concluded with the Ministry of Finance of the Republic of Belarus;
- purchasing of state bonds denominated in Belarusian roubles on secondary market at biddings of the Belorussian Currency and Stock Exchange.
