Russia to allocate USD 110 million to restructure external debt of Belarus
The Russian government has approved a draft in Russian roubles equivalent of USD 110 million. Funds will be provided for a 10-year period with a 4-year grace period. The loan will mean a timeout for Belarus: she will partially refinance current debt to Russia and slow down the reduction in gold reserves, but her bonds will become slightly less profitable. The Belarusian government will continue negotiations with other creditors to refinance debt on new terms. The loan is minimal and was meant to reduce Belarus’ appetites for financial aid. In addition, Russia by this increased pressure on Belarus to end confiscation practices at the Belarusian border with regard to transit goods by Russian companies.
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.