Updated at 11:43,21-10-2020

Lukashenko: We mustn't print money


President of Belarus Alexander Lukashenko declared the inadmissibility of issuing money in the country during the January 6 report of the National Bank's chairman Nadezhda Ermakova.

"We mustn't print money in no way, it's absolutely ruled out", the president said.

According to BelTA, Lukashenko pointed out that in this year, "everyone must forget that money obtained from emission can be used to provide loans". According to him, only those funds must be used, which will be earned in the economy as a whole.

President Alexander Lukashenko set a task before the entire banking system to monitor the effective use of loan sources. He also emphasized, the loan funds should only be granted to effective projects. In addition he set a task before Ermakova to reduce the refinancing rate and called the loan sources as "very expensive".

"We should give normal signals to our economy, business entities, and the actual rate should be lower, because with the current one, it's impossible to talk about an intensive development of the economy", Lukashenko said.

We note, to Belarusian authorities it's difficult to refrain from enabling a printing press. On January 1, 2012, after a lull of several months, the ruble supply increased by 13.2%, and the amount of cash rubles increased by 3%.

In their forecasts for 2012 independent economists are not very optimistic and warn, if Belarusian authorities to continue the same economic politics they have followed so far - to implement investment programs, to increase public sector wages - it won't allow them to contain inflation and, consequently, will force to enable a printing press.