Growth of external debt
Gross foreign debt of Belarus on 1 April 2011 reached USD 31711.8 million, increasing by USD 3221.2 million (11.3%) from the beginning of the year. External debt of public administration grew by USD 939.7 million (9.3%) to USD 10997.6 million.
Foreign debt of the monetary institutions amounted to USD 1713.5 million, decreasing in the first quarter by USD 141.8 million (7.6%). Debt of commercial banks increased by USD 1080.5 million (18.8%) to USD 6832.6 million. External debt of other sectors amounted to USD 11309.9 million, increasing by USD 1310.3 million (13.1%).
Direct investment increased by USD 32.5 million (3.9%) to USD 858.2 million.
External debt is growing and will grow, creating an issue for the government regarding debt management. In 2011 debt repayment were not particularly heavy however in 2012 debt service will exceed $ 2 billion. Accordingly, the authorities have two options: continue building a financial pyramid where the repayment of old debts comes from new ones or start privatization of strategic assets.
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.