Belarus intends to distribute credit risks
On November 14th, Deputy Finance Minister Ermolovich announced that Belarus would place new Eurobond issue on the international financial market in 2015 worth circa USD 1 billion with 10-year maturity period. Belarus is issuing new bonds for private and legal persons in order to ensure she has enough resources to support her international reserves (this issue becomes crucial since Russia’s funding opportunities are limited). In addition, Belarusian state banks might attract syndicated loans, some state owned enterprises might be privatised and one or two large enterprises might announce IPO independently. The most desirable scenario is that one of the leading European banks becomes a shareholder in a Belarusian bank or that a new bank is founded, mainly with the European capital, which would attract cheap resources from the European market in order to modernise the Belarusian economy.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.