National News

In January-August, national currency and prices are stable, National Bank says

In January-August 2007, Belarus ensured stability of the national currency and prices. All the main targets of the monetary policy are being met, Chairman of the Board of Directors of the National Bank of the Republic of Belarus (NBRB) Piotr Prokopovich reported to the President. Piotr Prokopovich also informed the President about the credit support to companies and the public rendered by the country’s banking system. Belarusian banks met the 2007 targets on real sector crediting within the eight months. Special attention was paid to providing loans to investment projects, housing construction and agricultural companies. Piotr Prokopovich reported that in the last three months NBRB cut the refinancing rate by 0.25 percentage points every month. As of September 1, 2007 the refinancing rate was 10.25% per annum. On the whole, the banking system of Belarus aims to promote household and corporate deposits and make loans more accessible. NBRB works hard to stimulate the growth of corporate and individual deposits. Thus, since the beginning of the year household deposits grew by more than Br1.7 trillion. As of August 22, 2007 deposits in Belarusian banks averaged Br 997,000 per capita, Piotr Prokopovich said. In January-August 2007 resources of Belarusian banks swelled by over 19% to make up nearly Br35 trillion. This year saw a major increase in the share of non-residents in the resources of the banks. In early 2007 the share of non-residents stood at 10.1% to reach 14.3% in early September. The increase is put down to Belarusian banks more vigorously using opportunities of the international financial market for developing the national economy. Savings of individuals constitute the larger part of the bank resources. On the one hand, the capacity of individuals grows as their welfare rises; on the other hand, the banking system is ready to attract the resources. The head of state also received a report about the progress in developing Belarusian rowing sports. As the Head of the Rowing Federation of Belarus, Piotr Prokopovich informed the President that the Rowing Canal in Brest will host the World Youth Rowing Championships in 2010 and European Rowing Championships in 2009. Piotr Prokopovich also reported about implementation of President’s instructions to develop agricultural companies managed by NBRB. Alexander Lukashenko demanded that special attention should be paid to saving material and energy resources in these agricultural companies to receive maximum return.