The National Bank to prevent banks from manipulating interest rates
The National Bank warned banks that any distortion of real interest rates using payments of fees would be regarded as a law violation. The National Bank limited interest rates on loans and deposits, and the banks have responded by applying various additional payments when issuing loans and additional rewards for the account holders. As a result, real interest rates on loans and deposits will fall, the agreements and conditions on loans and deposits will be unified, the lending activity will increase, and the volume of ruble deposits in the banking system will fall. In order to keep their profits banks might increase fines for overdue payments on loans. The competition for income of the citizens will shrink due to the sufficient volume of liquidity within the banking sector.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.