National Bank head reports to Lukashenko on implementation of monetary policy guidelines in 2004 :: Charter'97 :: News

The head of the National Bank of Belarus (NBB), Pyotr Prokopovich, on January 26 reported to Aleksandr Lukashenko on the implementation of Belarus` monetary policy guidelines in 2004. As the press office of the Belarusian leader said, Mr. Prokopovich delivered a detailed report on the results of the NBB`s effort to obtain the projected figures in areas that directly influenced the country’s social and economic development. Above all, according to him, the Bank ensured a stable rubel rate, providing loans to the real sector of the economy and implementing an efficient interest policy.

The Belarusian rubel had a stable exchange rate in 2004, Mr. Prokopovich said.

The depreciation rate of the national currency against the US dollar was almost 20 times slower than in 2003, being at 0.6 percent last year. The rubel`s rate to dollar was 2,156 on January 1, 2004 and 2,170 on the same date of 2005.

In pursuance of the Belarusian leader`s directive, loans issued by banks to the real sector of the economy rose by 56 percent instead of the projected 26 to 30 percent.

The interest rate policy followed by the NBB was, on the one hand, aimed at increasing the proportion of the population’s and companies’ deposits and, on the other hand, at lowering loan interests rates. In particular, the average loan interest rate was reduced from 30.8 percent in January to 19.9 in December. The National Bank also lowered its base refinance rate from 28 percent at the beginning of the year to 17 percent in October. The amount of individuals` deposits increased by 85 percent.

The NBB head reportedly said that the Bank’s policy and the performance of the banking sector had contributed to the fact that all the targets of the country’s social and economic development in 2004 were met.

According to the press office of Mr. Lukashenko, the head of state “especially emphasized" the need to obtain the projected monetary policy figures in 2005. According to him, banks above all should be engaged in the real sector of the economy and employ all resources to ensure that the projected social and economic development figures are obtained.

The Belarusian leader reportedly emphasized the importance of new steps to increase banks’ resources. He directed that the NBB should not only ensure the fulfillment of this year’s tasks but also meet the targets set for the first five years of the government`s 2001-2010 plan of banking development.