Sectoral sanctions against Russia may create problems for Belarusian banking system
On June 30th, 2015, the US Treasury included Belvneshekonombank in the list of organizations that are subject to sectoral sanctions envisaging a ban on access to financing by American companies and banks for a period exceeding 30 days. The Belarusian bank has received a formal ban on access to financing for a year in connection with the sanctions applied against the parent bank. As a result, the terms of settlements for the bank’s customers will be prolonged when dealing with foreign contractors in US Dollars; American companies and their representative offices in Belarus will refuse to cooperate with the bank’s clients; some large clients may transit to other banks; and there may be some problems with implementation of contracts denominated in US Dollars. In the view of further expansion of sanctions, other Belarusian banks may be included in the list, i.e. subsidiaries of Russian banks, which account for more than 20% of Belarusian banks’ assets.
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.