National Bank has to find new resources to refinance Belarus’ foreign currency liabilities

According to the National Bank, the net supply of foreign currency by legal entities and private persons on the domestic market side totalled USD 1.7 million. In the past four months, the average volume of net supply was USD 220 million per month, which helped the National Bank to maintain the gold reserves level. Net currency supply has reduced due to the negative situation in foreign trade and the summer holiday season. During the summer, low net supply of foreign currency will persist. In order to attract currency, banks may raise some rates on foreign currency deposits for legal and physical persons; obtain new syndicated loans, which could be used to refinance the National Bank’s obligations; and the Finance Ministry may place new securities on the domestic market. In view of the favourable situation on the international financial market, Belarus may issue Eurobonds with a total worth of USD 500 - 1000 million, which could solve the problem with servicing Belarus’ external debt before Q4 2016.