National Bank suggest that companies seek cheap loans outside banking system

Category status:
September 19, 2016 10:27

As of September 1st, 2016 Belarus established an Encumbered Assets Registry, and started the transition to International Financial Reporting Standards, which should increase the transparency at enterprises vis-à-vis foreign creditors, and should bring other financial resources outside the banking sector. The expected discount rate in 2017 is projected at 15%-17% (against current 18%), which would not make loans substantially cheaper for enterprises. Enterprises may boost activity on the domestic market by selling assets and bonds to private persons. The Belarusian authorities are likely to lift the ban on asset sales for some loss-making enterprises and some assets may be put up on the international market. Enterprises, which will be unable to raise additional funds or to restructure current debt, will be subjected to compulsory rehabilitation procedure by Belarusian banks.

Similar articles

Number of citizens excluded from social security system would be expanded
October 02, 2017 12:24

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.