High interest rates on ruble deposits reduced devaluation fears
A record-high growth in ruble deposits by the population during the past two years implies that devaluation fears have reduced. In addition, in December 2013 Belarus received USD 440 million from VTB Bank (Russia) and USD 500 million from the Russia’s National Bank. However, the interest rates on deposits will be gradually reduced. The banking sector and industries will increase pressure on the National Bank to remove restrictions on loans in the economy and to reduce interest rates on loans. The population will become a foreign currency net seller.
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.