Business news

MINSK, 26 November (BelTA) – It is possible to secure a single-digit refinancing rate next year, BelTA learned from Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Pavel Kallaur.

The head of Belarus’ central bank said: “We expect we will be able to reach a single-digit refinancing rate in 2019. It will surely depend on the performance of the economy, the state of the balance of payments, external conditions. We are going to make decisions during regular sessions of the board. We will notify the public about the schedule of these sessions at the end of this year and will strictly follow this schedule.”

Pavel Kallaur said he believes that interest rates on loans will continue falling the way they are now. “That is they will be getting closer to single-digital figures. We are primarily talking about the refinancing rate. Further reduction of interest rates on ruble loans will follow the refinancing rate,” noted the official.

According to the source, the central bank intends to improve communication with mass media. “In particular, decisions on the interest rate will be definitely followed by a comment from the chairman of the board to explain why the decision was made and what prompted it. So that the public would understand and trust the policy of the central bank,” said Pavel Kallaur.

At present the NBRB’s refinancing rate stands at 10% per annum. The bank has reduced it twice by 0.5 percentage points this year. In turn, in 2017 the refinancing rate was reduced eight times, with the refinancing rate down from 17% to 10% in the last two years.

Pavel Kallaur also said that as part of the de-dollarization policy the share of ruble loans will reach at least 50% in order to help reduce risks for companies in conditions of possible external shocks.

“The central bank monitors financial stability. We always pass decisions on key indicators and stick to them. There is stability on the monetary management market, in particular, the currency market. The payment system operates steadily just like the banking system as a whole. A flexible exchange rate policy allows us to absorb some external shocks in a timely manner. The combination gives us reasons to believe that we are unlikely to experience some disturbances,” the head of Belarus’ central bank concluded.