Wide range of issues in the banking system under sanctions discussed at Palace of Independence

The whole range of financial and banking issues were discussed today at the level of the head of state. The head of the National Bank was speaking at the Palace of Independence. First Deputy Prime Minister, Deputy Head of the Presidential Administration and the assistant on the financial and credit system issues were also invited to the talk. Belarus has actually been working under the pressure of unprecedented and unfair restrictions for the last year. The conditions are not easy. Nevertheless, we are resilient to the sanctions.

"The first question: how did the banking system respond to this unprecedented aggressive sanctions pressure, how was the banking system mobilized?" - the head of state asked. The second and very important issue, outlined by the head of state, concerns measures to ensure the settlements of economic entities in foreign trade transactions. "It seems that we are also overcoming it," he noted.

Alexander Lukashenko stated that the situation has become more complicated and is more dependent on the partners - foreign banks. "Nevertheless, we seem to be coping with it. But there are some moments. I feel it when I visit specific enterprises, when they ask for help. So I would like to hear the answers to these questions - how we are coping here," said the President.

He noticed that 75% or more of export-import operations in the world are paid in dollars and euros. "They are the toxic currencies for us," said Alexander Lukashenko.

Alexander Lukashenko stated that the situation has become more complicated in this regard. The next equally important issue is to ensure the work of the real economy. "The eternal problem: the National Bank is trying to pursue a more stringent policy, the government and business entities are asking to make it softer," said the Belarusian leader.

"The issue of credit availability. The central issue that we have to discuss with you. It concerns the support of the real economy," said Alexander Lukashenko.

The President was interested in how cooperation with Asian banks was developing and how the national regulator reacted to the shift of the business activity to that part of the world. Alexander Lukashenko instructed the head of the National Bank to point out in his report how the integration projects with Russia are being implemented, as well as to present his view on inflation in the country.

He noted that the National Bank has traditionally been a determining structure in this matter. "Let's not give it up," said the Belarusian leader.

The President inquired about the National Bank's evaluation of the situation with inflation and price growth. "There is only one criterion: not only the economic indicators, but the reaction from life. So I would like to hear your assessment," outlined another topic for discussion the head of state.

As for inflation, the forecast of the National Bank is positive: the peak is behind us and it will gradually slow down. Both the National Bank and the government are focused on it. In general, their coordinated work helps the real sector to adapt to the difficult situation with sanctions, reduce the negative impact on the economy and ensure financial stability.

"This year the economy is operating with a positive balance of payments. Enterprises and the country received $2.1 billion of proceeds in 9 months, which the enterprises used partially to repay foreign payables and partially to repay loans of Belarusian banks in foreign currency. There was also good profitability in the real sector of the economy - about Br12.5 billion of profit on a net basis. This, too, made it possible for the enterprises to solve their problems on their own. So, we have such a positive situation, when the solvent demand, especially in Belarusian rubles, is satisfied by the banking system. We have reduced loans in foreign currency, which is, in fact, very positive," said the head of the National Bank.

"Responsibly and professionally" - this is how the regulator continues to build a strategy of action, ensuring price and financial stability and contributing to economic development.