Retailers hope to boost sales as people’s access to consumer loans improves
As of May 1st, 2017, the National Bank lifted the requirement to provide a certificate of income when applying for a consumer loan. This requirement was introduced in April 2014 in order to restrict loans to individuals who later could not service the loan. Amid lowered interest rates and small share of troubled loans among the population, most banks are likely to abandon the income certificate rule for small loans. The competition on the consumer lending market is likely to increase, as well, the length period for instalments in some retailers on consumer purchases could be increased and size of overpayments decreased. As people’s wages increase, they could step up demand for consumer loans, and retailers could offer more goods with a low initial payment or without the down payment altogether.
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.