The situation in Belarus in June should have influenced the behavior of foreign banks. Reaction of foreign media on the issue of Belarusian government bonds
The largest Swiss weekly newspaper SonntagsZeitung stated that:
Protests against falsification of the presidential elections are still ongoing in Belarus. In response, the Lukashenka’s regime persecuted and imprisoned those who disagree. The Swiss citizen Natalia Hershe was sentenced to 2.5 years in prison.
When sanctions are imposed on government representatives, this automatically means an increase in the level of risk of the state as viewed by foreign banks. In June 2020, the media already reported on the situation in Belarus. This should have influenced the behavior of banks.
Pavel Latushka, head of the shadow government known as the National Anti-Crisis Management called on investment banks, including two Swiss ones, to stop financial transactions with Belarus, and also criticized banks for buying Belarusian government bonds.
The democratic forces of Belarus are interested in how doing business with a repressive regime is compatible with the principles of social investment."
If Zurich does not react to the situation, it could cause great damage not only to the reputation of Swiss banks, but to the entire state.
Debtwire economic edition:
“Arrests of civil activists and political leaders of the 2020 presidential campaign had been in full swing by 16 June, when Belarus started marketing its Eurobonds. The bank-arrangers, however, ignored the political situation and human rights violations in the country and proceeded with the issuance.”
“The country depends on refinancing its external debt, which increased by 25% relative to its gross domestic product last year to around 50% of GDP, and is very likely to be on the brink of default.”
The National Anti-Crisis Management continues the campaign within the framework of the Plan “Belarusian Liberation. Spring-2021."
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