Some Russian banks have cut rates on foreign currency deposits for the population to less than 1% per annum with a one-year maturity period. This measure may attract Russian investors, who will be looking for alternative options to accommodate available funds, so as Belarusian banks offer 4% per annum. Even though Belarus plans a further reduction in interest rates on foreign currency deposits, the Finance Ministry may issue additional government foreign currency bonds for individuals, and Belarusian banks may arrange bond issues with one or two year maturity period at 5% per annum. The public debt servicing costs may also reduce thanks to interstate commercial loans at a lower rate. If Belarusian banks improve foreign currency liquidity, they may lower rates on corporate foreign currency loans to 10% per annum or less.
