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How the regime will capitalise on the debts of loss-making enterprises at the expense of Belarusians

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The illegitimate government will allow the Asset Management Agency (AMA) to issue its own bonds. Why is this bad news for everyone but the regime?

The Asset Management Agency JSC was created by Lukashenko’s decree No 268 of 14 July 2016. Officially, the AMA aims to create conditions for the comprehensive reform and financial recovery of agricultural production. In reality, it is a special financial organisation whose task is to "dissolve" public sector debts to banks into thin air.

But the AMA has existed for several years — so why are we talking about it now?

In April, information appeared on the government’s consideration of a draft decree on "creating conditions for the financial recovery of organisations in the real sector of the economy". According to the draft, the AMA would be able to issue its own bonds and use them to "buy" the debts of industrial companies to banks and receive the stocks of these companies in return. In other words, the AMA will be able to manage their assets. Which considering the recent signing of the decree "On Attracting External Government Loans" poses a serious threat of selling these assets to third parties — to repay future government loans. Pavel Latushka spoke about this decree earlier in his appeal to the management of several Russian banks.

Furthermore, according to our information, the AMA bonds could become one of the tools of the "big bank robbery" that the regime is preparing for in July. Today we will talk about this in more detail and explain how the AMA’s new credentials will endanger the well-being of hundreds of thousands of Belarusians.

How the regime will capitalise on the debts of loss-making enterprises at the expense of Belarusians. We will explore this in more detail in the blocks below.

AMA will become the owner of the assets of loss-making enterprises

  1. The Asset Management Agency (AMA) will issue its bonds
  2. The regime will require banks to buy the AMA bonds
  3. The proceeds from their sale will be forwarded to the banks to buy out troubled state enterprises
  4. Loss-making state companies will "pay off" the AMA with their shares

What is the purpose of this scheme?

  1. To write off loans of loss-making state enterprises from banks
  2. So that loss-making enterprises, having written off old debts, could take new loans
  3. To be able to sell unprofitable enterprises, but already cleared of debts

What is wrong with the scheme?

  1. Loans previously issued to state-owned enterprises are knowingly unrealistic for repayment
  2. The AMA bonds are not backed by anything. The illegitimate government cannot act as guarantor because it is practically bankrupt

The banks will be the first to lose
By exchanging the debts of loss-making companies for AMA bonds, the banks will not get rid of bad assets. They will get an even more troubled asset. But on paper their financials will be improved.

On the one hand, it improves their ratings and on the other, it allows them to circumvent the National Bank regulations previously limiting them in issuing new loans to loss-making enterprises. Now the banks will be forced to issue them.

That is, the banks would be the first to lose out from this scheme. But they are not the only ones

Ordinary Belarusians will bear the brunt

We should remember that neither bonds issued by AMA, nor the shares of state-owned companies that will come under the Agency’s control, are backed by anything. Moreover, this means that they have to be somehow transformed into real money. But how?

At the expense of the ordinary Belarusians.

1) Voluntary and Compulsory Sale of the AMA Bonds to the population
Either by trickery or by directives, the regime will force the Belarusians to buy the AMA bonds. Roughly, this can be compared to the sale of lottery tickets through direct orders

2) Directive conversion of household deposits into AMA bonds
By special decree, banks will be allowed to issue deposits in the form of bonds. In other words, instead of their real money, the depositors will get worthless junk.

3) Concealed privatization through the sale of state enterprise shares to third parties
Simply put, AMA will find large "investors" in Russia (because nobody else wants to do business with the regime) and sell them shares of Belarusian enterprises for next to nothing. Thereby facilitating the raider seizure.

In case the AMA has the controlling interest, the enterprises can be completely taken over by Russian investors. Together with their employees. Whose future fate will depend only on the desire of the new owners to save jobs (and the enterprises themselves), or not


1. The AMA scheme will not only allow the regime to "wash off" the debts of loss-making enterprises; it will also transfer them onto the shoulders of ordinary Belarusians

2. What`s more, the regime plans to make money out of thin air by selling "junk" AMA bonds to Belarusians and giving them to deposit holders instead of real money

3. This scheme also directly jeopardizes the workers, because by becoming the holder of assets of state-owned enterprises, the AMA will be able to sell them to Russian "investors" who will not give any guarantees to the workers

What can you do?

1. Don’t keep money in bank accounts to prevent banks from using it in grey deals with the regime

2. Withdraw all deposits from banks to prevent the regime from turning them into "junk" AMA bonds

3. Do not buy AMA bonds when they try to impose them on you

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