The stability of the national currency in Belarus will be maintained - P.Prokopovich

May 14, Minsk /BELTA/. President of Belarus Alexander Lukashenko received the Chairman of the Board of the National Bank, Pyotr Prokopovich, for a report on May 14, BELTA was informed by the press service of the Belarusian leader. The head of state was informed that all key monetary policy indicators for the first 4 months of the current year have been fully met, and stabilization has been achieved in the financial markets. According to Pyotr Prokopovich, it is especially important that the stability of the national currency exchange rate is maintained this year. In fact, as of today, compared to the beginning of the year, this indicator against a basket of three foreign currencies remains unchanged, despite sharp fluctuations within the basket between the euro and the dollar. In the first quarter, the situation with exports of goods and services improved in the country, increasing by 29% compared to the same period last year. The country received $455 million more in foreign currency earnings than in the first quarter of 2009. As a result, gold and foreign exchange reserves have increased, amounting to $6 billion 515 million in national definition as of May 1. This is almost $550 million more than on January 1 of this year. This trend strengthens the confidence that the stability of the national currency will be maintained, as it is based on improving economic performance. The head of the National Bank informed the President that lending to the economy is proceeding in full, and to effective projects. As of May 1, the loan debt of the real sector of the economy has already reached Br71 trillion, and compared to May 1, 2009, there is a 32% increase in loan debt. It is important that the banking system currently has the capacity to increase lending. For the first time in the last year and a half, sufficient liquidity of the banking system has been practically achieved. Pyotr Prokopovich emphasized the importance of all banks starting to implement the National Bank's recommendations on reducing interest rates. In particular, interest rates on newly issued loans in March decreased by 1.1% compared to February. The head of the National Bank expressed hope that the recommendations to bring loan rates to the level of 5% in June will be ensured. Thus, the work to achieve the same level of interest rates on loans as in the pre-crisis period – the refinancing rate plus 3% – will be completed. The refinancing rate has been lowered three times this year, and currently stands at 12%, which is within the corridor outlined in the Main Directions of Monetary Policy. According to Pyotr Prokopovich, the payment system is working properly – without failures or violations. Payments are made daily in real-time, and 13% more payments have been processed than last year. This indicates a revival of economic activity of economic entities. Thus, the parameters are being met in all key areas of the National Bank's activities necessary to ensure the operation of the real sector of the economy. The head of state demanded that all monetary policy indicators for the results of the half-year and the year be met.-0-