New Eurobonds will be issued to repay previous borrowings
As of June 19th, 2017, Belarus is planning to conduct a road show of Eurobonds nominated in USD in the US and Europe. Citi, Raiffeisen Bank International AG and the Development Bank of Belarus will be the organisers, the total issue volume could be up to USD 1 billion. Bonds maturity period would be between 5 and 10 years, taking into account the absence of problems with the settlement of external liabilities. The demand is expected to exceed the issue, the interest rate could be 5% to 6% per annum depending on the maturity, and some bonds could be bought out by organizations and trust funds located in Belarus. Most funds raised from the bond issue would be spent to repay Belarus’ Eurobonds with 7-year maturity period, which expires in January 2018. The remaining funds would be transferred to international reserves and used to repay other external liabilities.
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.