Belarusians regained confidence in national currency deposits
According to the National Bank, in July 2014, despite lower deposit rates, fixed-term deposits in the national currency grew by BYR 197.5 bln – the largest increase since early 2014.
Rouble fixed-term deposits will still be more attractive than currency ones due to the National Bank’s predictable policy regarding the depreciation of the Belarusian ruble against the US Dollar. Banks’ currency deposits will increase only due to interest capitalisation. Individuals will continue selling their currency savings (net supply will persist). If the Government decides to issue foreign currency government bonds at 6.5-7% per annum, they might be in demand by the population.
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.