Alexander Lukashenko’s administrative tools to stimulate exports
On 6 March Alexander Lukashenko signed a Decree No 126 to regulate the granting of export credits by banks.
For instance, the document provides for the granting of export credits in Belarusian rubles by banks with the interest rate of two-thirds of the discount rate of the National Bank. It also provides for compensation of losses to banks due to the provision of export credit in the loan’s foreign currency, extension of the waiting period of completion of the foreign trade operations and the payment of insurance indemnity under an insurance contract of export risks secured by the state without permission of the National Bank. In order to reduce the time of issue of export credits, the decree envisages that the compensation of losses to banks from the provision of export credit up to USD 500,000 in equivalent, will be authorized by the Finance Ministry’s and adopted following a procedure established by the Government of the Republic of Belarus. Thus, the planned growth of exports will be achieved via administrative support and concessional lending.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.