Tightening of monetary policy
The National Bank of Belarus on 1 June 2011 raised the refinancing rate by 2 % to 16% per annum.
Moreover, the government decided to stop granting preferential loans for the acquisition of Belarusian goods. Preferential loans for the purchase of Belarusian goods are issued by JSC “Belarusbank”, Belinvestbank, JSC “BPS-Bank”, Belagroprombank for up to three years at an annual rate of 10%.
While tightening the monetary policy, as well as bearing in mind the rising prices, the NBoB consistently raises interest rates, including the deposit IRs. However, restoring confidence in the banking system and stemming the outflow of deposits is only feasible after the stabilization of the situation on the foreign currency exchange market. Currently, the situation remains tense, although not critical for the banking system.
The Government should continue reducing the gross domestic demand via suspension of various schemes of concessional lending to enterprises and population, while the National Bank should continue raising interest rates.
During searches of social and "green" activists and anarchists, law enforcement has seized computers, mobile phones and publications. The authorities have also exerted additional pressure on supporters of unauthorized street protests and independent lawyers, who represented defendants in the White Legion case. The security services have stepped up the persecution of opponents before the street protests announced by the opposition. Apparently, the Belarusian authorities aspire that participants in street protests would reduce in number and that the low interest of the population to socio-political agenda before the local election campaign would retain.