Belarus plans to restore its position in international rankings
To restore the sovereign ratings the government needs to actually demonstrate the reform potential and the will to implement these reforms, as well as to reach an agreement with the IMF on a new program, because in the current world situation, cooperation with the IMF is a kind of guarantee for investors.None of these prerequisites have reasons for implementation and, therefore, only expensive and mostly related loans or sale of property are opened for the Belarusian authorities.
Belarus plans to restore its position in international rankings, said Andrei Kharkovets. They were reduced by two degrees in 2011. According to the minister, the job of ratings’ support requires much more aggressive promoting and defending the interests of the country.
After repeating the slogans voiced several times to stop the emission support from banks and enterprises, the minister emphasized in his speech effective operation of each enterprise, including the search for foreign investors.
Reducing the budget possibilities of participation in financing the economy and strengthening the own capacity of each enterprise must be accompanied by the development of securities market instruments, and hence the ability to self-search of resources by the companies in this market.
High level of external debt and its approximation to the parameters of the threshold sets as the primary objectives of debt management to preserve the volume of the economically safe level, improving the debt structure and provide access to all forms of borrowing, reducing the cost of borrowing, and enforcing the state’s obligations in full. Consequently, sooner or later the Finance Ministry will face the task of producing new country bonds (Eurobonds).
Currently, the cost of borrowing on external markets for the country is very high; Belarus raises funds through syndicated loans of Russian banks, refusing at the same time from cheap loans and grants of international organizations that are not willing to lend to the restoration of the administrative-command 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.